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Nexo crypto lender is under investigation by the Bulgarian authorities on suspected money laundering, tax offences, unlicensed banking and computer fraud.
The Bulgarian Prosecutor's Office is conducting an investigation in Sofia to There are over 300 people involved.neutralize the criminal activityShe testified that she had strong AML/KYC policies and suggested that she was being unfairly targeted. of Nexo, according to an automated translation of a statement issued on Facebook Thursday. More than 300 people are participating.
"the main organizers of the regime are Bulgarian citizens, and the activity was conducted primarily from the territory of Bulgaria," Prosecutor General siika mileva said in the communique. "evidence was gathered that a person who used the platform and transferred cryptocurrencies was officially declared a terrorist financing person," the statement said.
In a twitter feed, nexo states that it cooperates with the authorities and regulators concerned. It said it had stringent anti-money-laundering (AML) and know-your-customer (KYC) policies and implied it was being targeted unfairly.
'There are authorities in one of the Bulgarian offices of nexo, which is, You know that, the most corrupt country in the EU (European Union)", a nexo spokesman told coindesk in an e-mail. They make enquiries about a Bulgarian entity within the group that is not in contact with the client. Only has administrative functions – pay, customer support, compliance"
We are one of the strongest KYC & AML entities. The lender's native coin sank around 7% to as low as 70 cents. The lender coin has flowed around 7% at as little as 70 cents.
Read more: Why Do Crypto Lenders Keep Blowing Up?
UPDATE (Jan. 12, 12:44 UTC): Adds additional detail from prosecutors' statement and market reaction in last two paragraphs.
