London-based crypto lender Nexo (NEXO) has shut down two of its subsidiaries positioned within the U.Ok. on Could 11, Bloomberg Information reported.
The lender can be going beneath an investigation in Bulgaria for allegedly being concerned in an organized crime scheme, the Bloomberg article famous.
Branches shut down
The lender utilized to the U.Ok. authorities to close down Nexo Monetary Companies Ltd. and Nexo Clearing and Custody Ltd.
Nexo’s Co-founder Antoni Trenchev claimed that the branches have been closed off as a result of company-wide “restructuring.”
In accordance with Trenchev, Nexo is “rethinking the best way” it goes about “servicing shoppers” however shouldn’t be contemplating exiting the U.Ok. market.
The authorized costs
In January, Bulgarian authorities raided Nexo’s places of work in Sofia as a result of investigations into Nexo which began months in the past.
In February, Bulgarian authorities charged 4 individuals working at Nexo and began investigating the lender. The prosecutors claimed these 4 people shaped an organized crime group and dedicated cash laundering, unlicensed banking actions, and tax and laptop crimes.
Nonetheless, this isn’t the one authorized dispute the lender has been concerned in. In June 2020, the U.S. Securities and Trade Fee (SEC) charged the lender a $22.5 million penalty for failing to register its retail lending product. In January, Nexo settled with the SEC by paying $45 million in fines.
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