Nexo co-founder and managing partner Antoni Trenchev has ordered one of Nexo’s offices in Bulgaria to be raided following local reports that the office in Sofia was raided in connection with “financial crimes”. I confirmed that the authorities were present.
Trencheff said crypto slate He called the allegation “ridiculous” because “Bulgaria is the most corrupt country in the EU” and Nexo is “one of the strictest organizations when it comes to KYC/AML.”
Trenchev said the nature of the survey is related to the non-customer facing part of the business. he added:
“they [authorities] I am inquiring about the Bulgarian entity of the Group. This entity does not have customer-facing functions, only operational expense-related functions such as payroll, customer support, and back office. ”
A Nexo spokesperson, meanwhile, said the investigation and raid were politically motivated and linked to the war between Ukraine and Russia.
A spokesperson said:
“Since the war began in Ukraine, we have helped raise millions of dollars for victims and have restricted customers from Russia and sanctioned territories.”
They added that the exchange has faced backlash for taking a stance in favor of Ukraine in a country where opinions on the issue are extremely divided.
Uncertainty about the situation coincides with the drop in price of Nexo’s native token NEXO, down 5% at press time.
Trenchev said earlier crypto slate In an interview, Nexo said it “got a license that didn’t have to stay ahead of the regulatory game.”
However, Nexo continues to be the target of criticism from the cryptocurrency community regarding possible bankruptcy. So far, however, the exchange shows no signs of collapsing and continues to support trading and withdrawals for all customers as of press time.