Siika Mileva, a spokesperson for Bulgaria's chief prosecutors, denied the political motivations behind the investigation against crypto-lending firm Nexo. according to to local reports. The comments were made in response to claims the investigation had a connection to the company's political donations.
Almost every case in which a prosecutor's office launches an investigation that affects someone's financial interests results in attacks and accusations, Mileva said, adding that "attacking institutions has become a national sport."
On January 12, a group of prosecutors, investigators, and foreign agents searched the company's offices in the Bulgarian capital of Sofia. The operation targeted a large-scale money laundering scheme, as well as violations of Russia's international sanctions.
In less than 48 hours after the Nexo offices were raided, four people were charged with money laundering, tax crimes, computer fraud and banking without a license. Two people were released on bail worth nearly $550,000. The other two remain missing in Bulgaria and have been declared internationally wanted persons. It is not clear if the people had a connection to the crypto company.
According to Mileva, the transactions carried out by Nexo amounted to $94 billion in a period of five years. An organized criminal group operating in several countries since early 2018 has been investigated, the spokesperson said.
On Twitter, Nexo complained about the police raid, saying it was preparing a lawsuit against for the damages caused by the abrupt police interruption. The company classified the authorities' approach as โkick first, ask questions laterโ.
According to the company, the investigators did not provide a search warrant for hours, while the inspectors never identified themselves to Nexo employees.
We are always cooperating with the relevant authorities and regulators, and we hope to have exciting news in the coming weeks. 7/
โ Nexus (@Nexus) January 12, 2023
Nexo operates an investment platform where users can bet and borrow against crypto. Although it has offices in Bulgaria, the firm does not provide services to residents of the country due to potential regulatory issues. The company was founded in 2018 and has offices in the UK, Bulgaria and Switzerland.
In December 2022, Nexo announced that phase out its operations in the United States due to the lack of clear regulatory cooperation with US authorities.
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