Crypto lending platform Nexo is considering filing a $1 billion lawsuit against the Bulgarian government for persistent pressure on the company.
In early January, more than 300 police raided several Nexo offices in Bulgaria’s capital, Sofia. The raids were carried out on the platform’s suspicion of money laundering, tax evasion and other offenses related to unlicensed banking activities. Nexo denied all accusations made by the Bulgarian authorities, calling the officials’ actions absurd and illegal.
The Bulgarian authorities deny that the investigation is politically motivated. However, Nexo executives are insisting on this, as the company’s employees have previously sent significant donations to the opposition political alliance “Democratic Bulgaria”.
The searches resulted in the platform being forced to suspend its listing process on the US stock exchange. According to Nexo consultants, the damage caused to the company by the Bulgarian government is more than $1 billion. The Nexo management intends to demand these funds from the Bulgarian authorities through a lawsuit.
Last week, Nexo sued the Cayman Islands regulator for refusing to register the platform as a virtual asset service provider. The team called the refusal unreasonable and stated that the agency only focuses on the opinion of other regulators. Crypto lender Nexo recently agreed to pay $45 million to settle claims from U.S. officials accusing the platform of promoting lending products that violate securities laws.
Source: Bits
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