Nexo’s co-founder and managing companion Antoni Trenchev confirmed that authorities are current at certainly one of Nexo’s places of work in Bulgaria following native reviews that the Sofia workplace was raided in relation to “monetary crimes.”
Trenchev informed CryptoSlate that “Bulgaria is essentially the most corrupt nation within the EU” and referred to as the allegations “absurd” as Nexo is “one of the crucial stringent entities on the subject of KYC/AML.”
Trenchev stated the character of the investigation is said to a non-customer-facing a part of the enterprise. He added:
“They [authorities] are inquiring a couple of Bulgarian entity of the group that’s not buyer dealing with however solely has operational expense associated capabilities – payroll, buyer assist, again workplace.”
In the meantime, a Nexo spokesperson stated the investigation and raid had been politically motivated and linked to the Ukraine-Russia conflict.
The spokesperson stated:
“For the reason that onset of the conflict in Ukraine we’ve helped elevate tens of millions for the victims there and restricted purchasers from Russia and sanctioned areas.”
They added that the alternate was dealing with backlash for its pro-Ukraine stance in a rustic the place opinion on the matter is extraordinarily divided.
The uncertainty across the state of affairs coincides with a fall within the worth of Nexo’s native token NEXO — which is down 5% on the day as of press time.
Group considerations
Trenchev beforehand informed CryptoSlate throughout an interview that Nexo had “acquired licenses that weren’t required to remain forward of the regulatory recreation.”
Nevertheless, Nexo has been a continued goal of criticism from the crypto neighborhood in relation to potential insolvency. Nevertheless, thus far the alternate has not proven any indicators of collapse and continues to commerce and assist withdrawals for all prospects as of press time.