Crypto lender Nexo wants to sue Bulgaria after office raids
Troubled cryptocurrency firm Nexo is planning to sue the Bulgarian government following massive raids on the company’s offices in Sofia.
Nexo has complained about the actions of law enforcement authorities in response to the investigation against the firm, the Bulgarian News Agency reported on January 13.
The company is said to be preparing to file a lawsuit against the authorities to seek compensation for damages caused by the immediate police shutdown. One report suggested that investigators did not serve a search warrant for hours, while inspectors never identified themselves.
Nexo believes the raids carried out on its offices yesterday were against the law and demonstrated “the total incompetence of those who carry out this disgraceful act”. Nexo also described the actions against the firm as “local Bulgarian arbitrariness”, which allegedly aimed to “destroy and loot a prosperous business”.
The firm also pointed out that Nexo does not offer any services to Bulgarian residents due to possible problems with the local government. The company also reiterated that it has been complying with anti-money laundering requirements and sanctions against Russia, in addition to cooperating with major crypto intelligence firms such as Chainalysis.
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The firm expressed confidence that it will win the trial, which will award Nexo compensation for the damage caused by the investigation, saying: “The damages that Bulgaria will pay once the claims are filed and won by Nexo will be a many other record. hundreds of millions, but, unfortunately, it will be at the expense of Bulgarian taxpayers”.
Siyka Mileva, a spokeswoman for Bulgaria’s chief prosecutor, said the investigation against Nexo involved more than 300 police officers, prosecutors and national security agents. She also noted that the investigation is currently limited to Bulgaria, with local police officers searching 15 addresses linked to Nexo since January 12. Other reports indicated that several foreign agencies were also involved in the investigation.
Siyka Mileva and Bulgaria’s cyber security officer. Source: Bulgarian News Agency
Nexo’s statement came shortly after the company reportedly experienced mass exodus amid reports of an investigation.
According to crypto-analytics platform Arkham Intelligence, Nexo has seen a “flood of exits” since the news broke. Blockchain tracker Cielo Finance also reported large withdrawals from Nexo, highlighting transactions of more than 200,000 USD Coin (USDC) leaving the platform on January 12.
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However, a Nexo spokesperson denied any abnormal output to Cointelegraph. “The current exits on the platform that we are seeing are normal, considering the general market conditions,” said the Nexo representative. The spokesperson added that exits accounted for 2% of Nexo’s total assets under management of $2.3 billion.