Police allegedly searched the headquarters of bitcoin lender Nexo in Bulgaria as part of an inquiry into the company. According to reports, Bulgarian authorities are investigating Nexo for possible money laundering and tax evasion offenses. 300 policemen surround the Nexo headquarters. The raid saw Nexo receive an enormous amount of withdrawal requests amid the FUD rise.
300 police officers, prosecutors, and other security personnel conducted a raid on the Bulgarian headquarters of the cryptocurrency lending company Nexo. According to reports, Nexo is at the focus of a concerted international investigation into allegations of tax fraud, cybercrime, money laundering, illicit banking, and evading the application of sanctions against Russia.
The Bulgarian offices of crypto lending platform Nexo have been raided by authorities in the presence of prosecutors, counter-intelligence officers and investigators, Novinite reports. The official spokesman said the investigation began several months ago https://t.co/S2ObDPQLQd
— Wu Blockchain (@WuBlockchain) January 12, 2023
Bulgaria’s senior prosecutor: A nexo client committed terrorist actions
Siika Mileva, the prosecutor’s senior spokesman in Bulgaria, accused the corporation of participating in criminal behavior while briefing the local press.
According to Mileva, they had confirmed that over $94 billion in turnover had traveled through the platform over the previous five years. Additionally, as per Siika, It has also been approved, and proof has been gathered that a client of the platform is a person who has been publicly identified as supporting terrorist actions.
In response to the raid, Nexo co-founder Antoni Trenchev said that it was related to a Bulgarian corporation affiliated with the business. Trenchev noted that the organization solely handled operational expenses and had no customer-facing roles.
The cryptocurrency lender announced intentions to wind down operations in the US in December progressively and said that talks with US regulators had been fruitless.
FTX effect is still being felt
The most recent issues to affect a player in the cryptocurrency lending sector are Nexo’s run-ins with Bulgarian law authorities. However, although other companies experience liquidity problems, Nexo’s situation is exceptional. Nexo, currently hit by a wave of withdraws amid its troubles, currently has $450 million in its addresses, $337 million of which are its native token.
Nexo has ~450M according to tagged addresses on @ArkhamIntel but $337M of that is in their native token, NEXO pic.twitter.com/XIKgCMOny7
— Conor (@jconorgrogan) January 12, 2023
An increasing number of businesses are under varying degrees of financial duress, including cryptocurrency lenders like Voyager and Genesis Global Capital of the Digital Currency Group.
The year-long crypto bear market has impacted these businesses, the failure of significant creditors like Three Arrows Capital, the collapse of the Terra ecosystem, and the bankruptcy of FTX. These troubles brought about FUDs on the legibility of exchanges’ audits prompting exchanges to make their reserves audits public. At the time, however, Nexo’s reserves were firm compared to now that it has been struck by turbulences.
Proof of Reserves matter, and so to be as transparent as possible, in 2021, a PCAOB-certified auditor and leading US accounting firm helped Nexo pioneer a real-time attestation of custodial assets to show that our assets exceed customer liabilities. 23/33https://t.co/nKmWs2cSiM
— Nexo (@Nexo) November 28, 2022
According to other recent information, Gemini co-founder Cameron Winklevoss demanded the immediate dismissal of DCG CEO Barry Silbert in an open letter in which he accused Genesis and DCG of scamming Gemini and 340,000 Earn customers.
