Nexo’s co-founder and managing accomplice Antoni Trenchev confirmed that authorities are current at one among Nexo’s places of work in Bulgaria following native stories that the Sofia workplace was raided in relation to “monetary crimes.”
Trenchev informed CryptoSlate that “Bulgaria is essentially the most corrupt nation within the EU” and known as the allegations “absurd” as Nexo is “some of the stringent entities with reference to KYC/AML.”
Trenchev mentioned the character of the investigation is said to a non-customer-facing a part of the enterprise. He added:
“They [authorities] are inquiring a couple of Bulgarian entity of the group that isn’t buyer going through however solely has operational expense associated features – payroll, buyer help, again workplace.”
In the meantime, a Nexo spokesperson mentioned the investigation and raid had been politically motivated and linked to the Ukraine-Russia battle.
The spokesperson mentioned:
“For the reason that onset of the battle in Ukraine we’ve got helped elevate tens of millions for the victims there and restricted purchasers from Russia and sanctioned areas.”
They added that the alternate was going through backlash for its pro-Ukraine stance in a rustic the place opinion on the matter is extraordinarily divided.
The uncertainty across the state of affairs coincides with a fall within the value of Nexo’s native token NEXO — which is down 5% on the day as of press time.
Neighborhood considerations
Trenchev beforehand informed CryptoSlate throughout an interview that Nexo had “acquired licenses that weren’t required to remain forward of the regulatory sport.”
Nevertheless, Nexo has been a continued goal of criticism from the crypto group in relation to potential insolvency. Nevertheless, to date the alternate has not proven any indicators of collapse and continues to commerce and help withdrawals for all prospects as of press time.
