- Nexo offices in Bulgaria were raided by authorities earlier this morning.
- There are claims that one of the users funded terrorism.
- Nexo has confirmed the incident and said it is working with authorities.
According to reports, the Bulgarian offices of crypto lender Nexo are under investigation by authorities over alleged money laundering, fraud and tax offences. The Bulgarian prosecutor’s office has issued a statement on the matter, saying investigations are underway to neutralize what they say is “criminal activity” by Nexo.
According to authorities, more than 300 people are currently involved in the operation, making it a larger operation in Bulgaria. According to the statement:
“Active investigative measures are underway in the capital to neutralize illegal criminal activities of Nexo cryptobank… Evidence has been collected that a person who used the platform and transferred cryptocurrencies was officially declared a terrorist financing person.”
In a Twitter thread, Nexo has stated that it is working with authorities and regulators. A Nexo spokesman also confirmed the raid on their Bulgarian office but said they are one of the strictest bodies when it comes to KYC/AML. The speaker said:
“There are authorities in one of the Nexo offices in Bulgaria, which as you know is the most corrupt country in the EU. You make AML and tax related inquiries to a Bulgarian entity of the group that has no customer contact but only has back office functions – payroll, customer care, compliance. We are one of the strictest entities in terms of KYC/AML.”
Take out crypto-backed loans for cash
Nexo allows users to take out crypto-backed loans for cash and also offers products that allow users to earn interest on their crypto assets instead of letting them sit idle. Last year, Nexo was the first company to offer a 12% APR on Apecoin.
The crypto lender has grown into one of the largest crypto lenders in the world with offices in different parts of the world including countries like Bulgaria. It is also among the top ten crypto apps for beginners as mentioned in our earlier post.
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