• Bulgarian authorities have raided the offices of crypto lender Nexo in Bulgaria.
• The authorities allege that one of the users of the platform was financing terrorism.
• Nexo has confirmed the incident and said it is cooperating with authorities.
Early this morning, Bulgarian authorities raided the offices of crypto lender Nexo in Bulgaria amid allegations that one of the users of the platform was financing terrorism. According to the Bulgarian Prosecutor’s Office, more than 300 people are currently involved in the operation, making it a major operation in Bulgaria.
The authorities issued a statement regarding the incident saying that investigations were underway to neutralize what they say is „criminal activity“ of Nexo. The statement also said that evidence had been collected to prove that a person who used the platform and transferred cryptocurrencies had been officially declared a terrorist financing person.
In response to the raid, Nexo took to Twitter to confirm the incident and said that they were cooperating with the authorities and regulators. A Nexo spokesperson also confirmed the raid at their Bulgarian office but said that they were one of the most stringent entities when it comes to KYC/AML.
The investigation is still ongoing and it is not yet known what the outcome of the raid will be. Nevertheless, it is clear that the authorities are taking the issue of money laundering and terrorism financing seriously and are not afraid to take action against those who are suspected of breaking the law.
Nexo is a crypto lender that enables users to borrow money against their crypto assets. The company has been operating since 2018 and has offices in multiple countries including Bulgaria, the UK, and the US. The company has also received investment from several high-profile investors including Pantera Capital and Polychain Capital.
It remains to be seen how this investigation will affect Nexo and its operations. In the meantime, the company has said that it is committed to ensuring compliance with the law and will continue to cooperate with the authorities as the investigation continues.