- Nexo workplaces in Bulgaria have been raided by authorities early this morning.
- There are claims one of many customers was financing terrorism.
- Nexo has confirmed the incident and mentioned it’s cooperating with authorities.
There are stories that the Bulgarian workplaces of crypto lender Nexo are being investigated by authorities for alleged cash laundering, fraud, and tax offences. The Bulgarian Prosecutor’s Workplace has issued a press release relating to the problem saying that investigations have been underway to neutralize what they are saying is “prison exercise” of Nexo.
Based on the authorities, greater than 300 individuals are at present concerned within the operation making it a significant operation in Bulgaria. Based on the assertion:
“Lively investigation actions are underway within the capital to neutralize unlawful prison exercise of the Nexo crypto financial institution … Proof has been collected that an individual who used the platform and transferred cryptocurrencies has been formally declared a terrorist financing particular person.”
In a Twitter thread, Nexo has mentioned that it cooperating with the authorities and regulators. A Nexo spokesperson additionally confirmed the raid at their Bulgarian workplace however mentioned that they’re some of the stringent entities in terms of KYC/AML. The spokesperson mentioned:
“There are authorities at considered one of Nexo’s workplaces in Bulgaria which is, as you already know probably the most corrupt nation within the EU. They’re making AML and tax-related inquiries a few Bulgarian entity of the group that isn’t buyer dealing with, however solely has again workplace features – payroll, buyer help, compliance. We’re some of the stringent entities as regards to KYC/AML.”
Taking out crypto-backed loans for money
Nexo permits customers to take out crypto-backed loans for money and likewise supplies merchandise that permit customers to earn curiosity on their crypto property as an alternative of letting them lie idle. Final yr, Nexo grew to become the primary to supply a 12% APR on Apecoin.
The crypto lender has grown to change into of the most important crypto lenders around the globe with workplaces in varied components of the world together with in international locations like Bulgaria. It additionally ranks among the many high ten greatest crypto apps for inexperienced persons as recorded in our earlier put up.
