The Bulgarian office of crypto lending platform Nexo has been raided by local police as authorities investigate suspected money laundering and tax violations.
The police are investigating a Bulgarian entity that has operational functions such as payroll and customer support, according to a statement by a Nexo spokesperson.
The company’s co-founder and managing partner, Antoni Trenchev, stated that the allegations are “absurd” and that Nexo is one of the most stringent entities with regards to anti-money laundering (AML) and know-your-customer (KYC) regulations.
According to a report by Bloomberg, over 300 police officers, prosecutors, and national security agents are involved in the operation.
The authorities have reportedly suspected Nexo of money laundering, tax crimes, and unlicensed banking activities.
This news comes as Nexo has been in talks to acquire rival lender Vauld. However, Vauld rejected Nexo’s latest bid, raising questions about the company’s solvency.
This incident is a reminder that the crypto industry is under scrutiny from regulators and authorities, and it’s important to comply with the laws and regulations to avoid legal issues.
