Nexo’s co-founder and managing associate Antoni Trenchev confirmed that authorities are current at one in every 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 probably the most corrupt nation within the EU” and known as the allegations “absurd” as Nexo is “probably the most stringent entities as regards to KYC/AML.”
Trenchev stated the character of the investigation is expounded to a non-customer-facing a part of the enterprise. He added:
“They [authorities] are inquiring a few Bulgarian entity of the group that isn’t buyer going through however solely has operational expense associated capabilities – payroll, buyer help, again workplace.”
In the meantime, a Nexo spokesperson stated the investigation and raid have been politically motivated and linked to the Ukraine-Russia battle.
The spokesperson stated:
“For the reason that onset of the battle in Ukraine we’ve got helped increase hundreds of thousands for the victims there and restricted shoppers from Russia and sanctioned areas.”
They added that the change was going through 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.
Neighborhood issues
Trenchev beforehand informed CryptoSlate throughout an interview that Nexo had “acquired licenses that weren’t required to remain forward of the regulatory sport.”
Nonetheless, Nexo has been a continued goal of criticism from the crypto group in relation to potential insolvency. Nonetheless, to date the change has not proven any indicators of collapse and continues to commerce and help withdrawals for all clients as of press time.