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Bulgaria Launches Probe of Crypto Lender Nexo, Raids Offices

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Local investigators in partnership with foreign agents raided the Bulgaria offices of the cryptocurrency lending firm, Nexo, on Thursday. Bulgarian business daily Dnevnik reports that a total of 15 offices are being checked with over 300 officials from various agencies working on the case.

Additionally, prosecutors have launched an international operation to investigate the company for allegedly committing financial crimes, failing with its anti-money laundering (AML) processes and allowing transactions that violate the international sanctions against Russia, local media report.

on Thursday, Siika Mileva, Bulgaria’s Prosecutor General, through a spokesperson alleged that one of the company’s clients is a person linked to financial terrorism. In addition, she noted that the crypto firm has processed over €94 billion in the last five years.

In addition, Mileva alleged that the company, whose founders are Bulgarians, ran shell companies. The prosecutor further noted that witnesses on the case are being interviewed at Bulgaria’s National Investigative Service.

Reaction on Twitter

However, in a lengthy Twitter post published on Thursday, Nexo accused regulators of adopting “the kick first, ask questions later approach.” Additionally, the crypto lending firm noted that it has rejected “a lot of business” because it “never compromises” with its “very stringent” AML and know-your-customer policies.

“Despite being fully automated, Nexo has 30+ AML compliance officers who ensure that we retain a real-time picture of our clients, which includes adverse media publications, OFAC sanctions lists, and a source & flow of funds, etc.,” Nexo wrote in the post.

Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/

— Nexo (@Nexo) January 12, 2023

Local investigators in partnership with foreign agents raided the Bulgaria offices of the cryptocurrency lending firm, Nexo, on Thursday. Bulgarian business daily Dnevnik reports that a total of 15 offices are being checked with over 300 officials from various agencies working on the case.

Additionally, prosecutors have launched an international operation to investigate the company for allegedly committing financial crimes, failing with its anti-money laundering (AML) processes and allowing transactions that violate the international sanctions against Russia, local media report.

on Thursday, Siika Mileva, Bulgaria’s Prosecutor General, through a spokesperson alleged that one of the company’s clients is a person linked to financial terrorism. In addition, she noted that the crypto firm has processed over €94 billion in the last five years.

In addition, Mileva alleged that the company, whose founders are Bulgarians, ran shell companies. The prosecutor further noted that witnesses on the case are being interviewed at Bulgaria’s National Investigative Service.

Reaction on Twitter

However, in a lengthy Twitter post published on Thursday, Nexo accused regulators of adopting “the kick first, ask questions later approach.” Additionally, the crypto lending firm noted that it has rejected “a lot of business” because it “never compromises” with its “very stringent” AML and know-your-customer policies.

“Despite being fully automated, Nexo has 30+ AML compliance officers who ensure that we retain a real-time picture of our clients, which includes adverse media publications, OFAC sanctions lists, and a source & flow of funds, etc.,” Nexo wrote in the post.

Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/

— Nexo (@Nexo) January 12, 2023

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