In a recent report, the law enforcer in Bulgaria confirmed the completion of the investigation on the Nexo platform. The report dated December 22 demonstrated that after thorough investigations, the law enforcement unit in Bulgaria failed to obtain substantial evidence concerning the troubled crypto lender.
The investigation started earlier this year after the regulators claimed that Nexo engaged in money laundering activities. The regulators accused Nexo of engaging in tax cheats and offering banking services without a license.
Bulgaria Police Lacked Evidence on Nexo Case
Following the multiple accusations against the Nexo team, the top executive was exposed to potential legal action. The report indicated that Nexo’s top-level executives, including Antoni Trenchev, Kalin Metodiev, Kosta Kanchev, and Trayan Nikolov, faced heightened regulatory scrutiny.
The primary objective of the investigation was to assess whether Nexo’s business practices conformed with the law. The Nexo investigation came when the global regulators had shifted their focus on crypto activities following the collapse of the Bahamian crypto exchange FTX.
According to the Bulgaria prosecutor’s office, the probing team found no evidence of criminal charges filed against Nexo. The report concluded that Nexo did not engage in tax violations, computer fraud, or money laundering activities.
The probing team noted that the Nexo offering did not compromise the financial elements.It implies that the crypto assets offered by Nexo were not classified as financial tools.
Guided by Bulgarian law, the prosecutor’s office took decisive action to drop the criminal charges filed against the Swiss-based crypto lender and the top executives. Based on the prosecutor’s report, the law enforcer argued that the criminal charges against Nexo emanated from political influence.
Police Complete Investigations Linked to Nexo Case
In an email report, the co-founder of Nexo, Antoni Trechev, regretted that the legal action against the crypto lender damaged its reputation. He argued that it might take a long time for the Nexo team to be removed from the wrong books.
In an earlier report, the chief prosecutor, Siika Mileva, confirmed that over 300 police officers and law enforcers raided Nexo in early January. The executive stated that Nexo was suspected of breaching the existing financial regulations.
The investigation launched by the Bulgaria prosecutors came months after the US regulators had issued a cease and desist order against Nexo. The US regulators claimed that Nexo offered unregistered securities and engaged in multiple law violations.
Elsewhere, New York officials claimed that Nexo presented false documents purporting to be compliant to the existing law. In a separate report, the embattled crypto lender revealed plans to auction its products and services in the US after the regulators failed to provide comprehensive regulations for digital assets.
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