Less than 48 hours after a raid on the offices of cryptocurrency lender Nexo in the Bulgarian capital of Sofia, prosecutors have reportedly charged four people.
According to a January 13 Bloomberg report, authorities loaded four Bulgarian nationals with the formation of an organized crime group, which may have included activities related to money laundering and banking without a license. The country's National Police Service reportedly seized a number of assets as part of the investigation, including cryptocurrency, cash and computers.
After the raid on January 12, Nexo described prosecutors' actions as a โhit first, ask questions laterโ approach. The company reportedly planned to file a lawsuit requesting compensation for the damages caused by the police actions, alleging that the authorities did not show a search warrant or identify themselves to the Nexo employees.
โWe are always cooperating with the relevant authorities and regulators,โ saying loan signing.
George Naydenov, frontend developer in Nexo's Sofia office, saying on Linkedin:
"I thank the Bulgarian Prosecutor's Office for trying, of course, in the most incompetent and pathetic way to take the job of more than 600 people at Nexo, including me."
It is unclear which individuals and what role they may have had in Nexo were involved in the arrests. The loan firm has approximately 600 employees in Sofia.
Related: California Files Injunction Against Nexo Interest Account, Says Eighth State to Take Action
Founded in 2018, Nexo operates an investment platform that allows users to bet and borrow against crypto. The company has offices in the UK, Bulgaria and Switzerland, but is reportedly not offering its services to Bulgarian residents due to potential issues with the local government. In December, Nexo announced that planned to phase out its services in the United States, citing the lack of a clear path to regulatory compliance.
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