NEXO, a crypto lending platform, plans to take legal action against Bulgaria over the actions of law enforcement against the company, according to a statement from the company’s management sent to the Bulgarian Telegraph Agency (BTA).
According to the company’s statement:
The compensations that Bulgaria will pay after the claims filed and won by Nexo will be another record breaking amount of hundreds of millions, but, unfortunately, they will be at the expense of the Bulgarian taxpayer.
NEXO claims that the “shameful action” taken against the company by local authorities in Bulgaria is illegal and displays the incompetence of those involved.
The company also characterizes the actions as local Bulgarian arbitrariness and claims that these actions aim to harm and exploit a successful business.
Nexo Raid In The Presence Of Prosecutors
An international operation against a large-scale scheme for financial crimes, money laundering, and violations of international sanctions against Russia was conducted on January 12th in Sofia, Bulgaria, according to a report.
The company targeted in operation was NEXO, suspected of being involved in a pyramid scheme led by Ruja Ignatova, also known as the “Queen of Cryptocurrencies,” currently on the FBI’s most wanted list.
The January 12th report stated that the company, which trades in cryptocurrencies, was believed to have been run by Bulgarians and promised high returns to investors through interest rates that were many times higher than those offered by traditional banks and brokerage houses.
The investigation into NEXO activities began after suspicious transactions were detected by foreign services, which were believed to be aimed at circumventing sanctions imposed by the European Union, Great Britain, and the United States against Russia.
Nevertheless, according to the latest BTA report:
At the briefing of the prosecutor‘s office, it was reported that evidence was collected that a client of the platform who transferred cryptocurrencies was officially declared a person who finances terrorist acts.
Nexo asserts that it adheres to the highest international standards for verifying the origin and destination of cryptocurrency assets entering and leaving its platform.
Additionally, the company has implemented strict policies regarding sanctioned territories and individuals in response to the ongoing conflict in Ukraine.
They also note that over 600 people work in Nexo in Bulgaria, and the company has paid tens of millions of BGN in the form of taxes and insurance.
Related Reading | Polygon Plans To Commence Its Hard Fork On Jan. 17