London-based cryptocurrency lender Nexo (NEXO) closed two of its UK subsidiaries on May 11, Bloomberg News reported.
The financier is also under investigation in Bulgaria for alleged involvement in an organized crime scheme, Bloomberg reports. article I got it.
Branch closure
The lender has applied to the UK authorities to close Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd.
Nexo co-founder Antoni Trenchev claimed the branch was closed due to a company-wide “restructuring”.
Trenchev said Nexo is “rethinking” how it “services its customers” but has no plans to exit the UK market.
legal fees
Bulgarian authorities raided Nexo’s offices in Sofia in January, citing an investigation into Nexo that began months ago.
In February, Bulgarian authorities indicted four Nexo workers and launched an investigation into its lenders. Prosecutors alleged that the four formed an organized crime group and committed money laundering, unauthorized banking, tax and computer crime.
But this is not the only legal dispute involving lenders. In June 2020, the U.S. Securities and Exchange Commission (SEC) fined lenders $22.5 million for failing to register their personal lending products. In January, Nexo settled with the SEC for a $45 million fine.
An article about cryptocurrency lender Nexo shutting down two UK-based subsidiaries was first published on CryptoSlate.
