The offices of crypto lending platform Nexo in Bulgaria were recently raided by local police as part of an investigation into alleged money laundering and tax violations.
The police are investigating a Bulgarian entity that handles operational functions such as payroll and customer support, according to a statement from a Nexo spokesperson.
The company’s co-founder and managing partner, Antoni Trenchev, stated that the allegations are unfounded, and that Nexo is one of the most stringent entities when it comes to complying with anti-money laundering (AML) and know-your-customer (KYC) regulations.
According to a report by Bloomberg, over 300 police officers, prosecutors, and national security agents are involved in the operation.
The authorities have reportedly suspected Nexo of money laundering, tax crimes, and unlicensed banking activities.
This news comes as Nexo was in the process of acquiring rival lender Vauld. However, Vauld rejected Nexo’s latest offer, raising questions about the company’s solvency.
This incident serves as a reminder that the crypto industry is under close scrutiny from regulators and authorities, and it’s important for companies to comply with laws and regulations to avoid legal issues.
