Nexo’s co-founder and managing accomplice Antoni Trenchev confirmed that authorities are current at considered one of Nexo’s workplaces in Bulgaria following native studies that the Sofia workplace was raided in relation to “monetary crimes.”
Trenchev informed CryptoSlate that “Bulgaria is probably the most corrupt nation within the EU” and known as the allegations “absurd” as Nexo is “some of the stringent entities on the subject of KYC/AML.”
Trenchev stated 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 assist, again workplace.”
In the meantime, a Nexo spokesperson stated the investigation and raid had been politically motivated and linked to the Ukraine-Russia warfare.
The spokesperson stated:
“For the reason that onset of the warfare in Ukraine now we have helped elevate thousands and thousands for the victims there and restricted purchasers from Russia and sanctioned areas.”
They added that the change 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 scenario coincides with a fall within the worth of Nexo’s native token NEXO — which is down 5% on the day as of press time.
Trenchev beforehand informed CryptoSlate throughout an interview that Nexo had “acquired licenses that weren’t required to remain forward of the regulatory recreation.”
Nonetheless, Nexo has been a continued goal of criticism from the crypto group in relation to potential insolvency. Nonetheless, thus far the change has not proven any indicators of collapse and continues to commerce and assist withdrawals for all prospects as of press time.