According to a representative for Bulgaria’s leading prosecutors, the probe was not motivated by the company’s political donations.
According to local media, Siika Mileva, a spokesperson for Bulgaria’s chief prosecutors, has denied any political intentions for the investigation against the crypto loan firm Nexo. The remarks were made in reaction to allegations that the probe was linked to the company’s political donations.
Almost every case in which a prosecutor initiates a probe into someone’s financial interests ends in insults and accusations, according to Mileva. “Attacking institutions has become a national pastime,” he added.
On January 12, a team of prosecutors, detectives, and foreign operatives raided the company’s premises in Sofia, Bulgaria’s capital city. The investigation focused on a large-scale money laundering scheme as well as violations of Russia’s foreign sanctions.
Four people were charged with money laundering, tax evasion, computer fraud, and unlicensed banking less than 48 hours after Nexo’s offices were raided. Two people were released on bail of roughly $550,000 each. The two others are still missing in Bulgaria and have been proclaimed internationally wanted. It’s unclear whether the individuals had any ties to the cryptocurrency firm.
According to Mileva, Nexo’s transactions totaled $94 billion over a five-year period. Since the beginning of 2018, an organised criminal group working in multiple countries has been under investigation, according to the spokeswoman.
Nexo protested about the law enforcement raid on Twitter, saying it was preparing a lawsuit for damages caused by the abrupt police disruption. The authority’s strategy was labelled as “kick first, ask questions later” by the corporation.
Investigators, according to the firm, did not issue a search warrant for hours and never identified themselves to Nexo staff.
Nexo runs an investment platform where users can stake and borrow cryptocurrency. Despite having offices in Bulgaria, the firm does not provide services to residents of the nation due to probable regulatory difficulties. The company was established in 2018 and has offices in the UK, Bulgaria, and Switzerland.
Nexo said in December that it would phase out its activities in the United States due to a lack of clear regulatory cooperation with US authorities.