Nexo Subject to Investigation in Bulgaria Over Alleged Money Laundering, Tax Offenses
Crypto lender Nexo is being investigated by authorities in Bulgaria over alleged money laundering, tax offenses and fraud.
The Bulgarian Prosecutor's Office issued a statement Thursday saying an investigation was underway to "neutralize the criminal activity" of Nexo. More than 300 people are involved in the operation, the prosecutor said.
"Evidence has been collected that a person who used the platform and transferred cryptocurrencies has been officially declared a terrorist financing person," according to the statement.
Nexo's office in Bulgaria was raided by police as part of the investigation, according to a report by Bloomberg.
In a thread on Twitter, Nexo said that it is cooperating with relevant authorities and regulators.
"There are authorities at one of Nexo’s offices in Bulgaria which is, as you know the most corrupt country in the EU," a Nexo spokesperson said in an email to CoinDesk. "They are making AML and tax-related inquiries about a Bulgarian entity of the group that is not customer facing, but only has back office functions – payroll, customer support, compliance. We are one of the most stringent entities with regards to KYC/AML."