Nexo’s co-founder and managing companion Antoni Trenchev confirmed that authorities are current at one among Nexo’s workplaces in Bulgaria following native reviews that the Sofia workplace was raided in relation to “monetary crimes.”
Trenchev advised 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 stringent entities close to KYC/AML.”
Trenchev mentioned the character of the investigation is expounded 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 going through however solely has operational expense associated capabilities – payroll, buyer assist, again workplace.”
In the meantime, a Nexo spokesperson mentioned the investigation and raid have been politically motivated and linked to the Ukraine-Russia warfare.
The spokesperson mentioned:
“Because the onset of the warfare in Ukraine we’ve helped increase hundreds of thousands for the victims there and restricted purchasers from Russia and sanctioned areas.”
They added that the alternate 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 scenario coincides with a fall within the value of Nexo’s native token NEXO — which is down 5% on the day as of press time.
Group considerations
Trenchev beforehand advised CryptoSlate throughout an interview that Nexo had “acquired licenses that weren’t required to remain forward of the regulatory recreation.”
Nonetheless, Nexo has been a continued goal of criticism from the crypto group in relation to potential insolvency. Nonetheless, to date the alternate has not proven any indicators of collapse and continues to commerce and assist withdrawals for all prospects as of press time.
