• Crypto lender Nexo is planning to sue the Bulgarian government after recent office raids.
• Nexo claims that the raids were conducted against the law and with the intent to “destroy and loot a prosperous business.”
• The firm also emphasized that it has been compliant with Anti-Money Laundering requirements and sanctions against Russia.
Crypto lender Nexo is taking legal action against the Bulgarian government following a series of raids on its offices in Sofia. The company has accused the law enforcement authorities of conducting the raids in an illegal manner, and of attempting to “destroy and loot a prosperous business.”
The raids occurred on Jan. 13, 2021 and were conducted by a team of investigators. Reports suggest that the investigators did not provide a search warrant for hours and never identified themselves. According to Nexo, the raids were conducted with the intent to “destroy and loot a prosperous business.” The firm has since stated that it is preparing to file a lawsuit against the authorities in order to seek compensation for damages caused by the abrupt police interruption.
Nexo also noted that it does not offer any services to Bulgarian residents due to potential issues with the local government. The company went on to emphasize its commitment to Anti-Money Laundering requirements and sanctions against Russia, in addition to cooperating with major crypto intelligence firms like Chainalysis.
Nexo’s CEO, Antoni Trenchev, has stated that the company intends to “hold accountable those responsible for this disgraceful event” and to “seek compensation for the damages inflicted upon Nexo’s business and employees.”
The recent raid is just one in a line of legal troubles that Nexo has been facing. In October 2020, the firm was subject to a class-action lawsuit for allegedly failing to protect users’ funds. A month later, reports emerged that the firm had experienced massive outflows amid office raids and an ongoing investigation against the firm.
It remains to be seen how this legal battle will play out, but Nexo has made it clear that it intends to fight for its rights and to seek justice. The firm has also stated that it “will continue to serve its customers and remain compliant with the highest standards of governance, security and regulatory compliance.”