Nexo, a leading crypto lending platform, is currently under investigation in Bulgaria for alleged money laundering and tax violations.
The probe was launched by the country’s Specialized Prosecutor’s Office, which specializes in financial crimes and organized crime.
Alleged Fraud And Tax Violations
According to a statement released by the prosecutor’s office, the investigation centers around Nexo’s activities related to money laundering and tax evasion.
The statement also notes that the probe is a “pre-trial proceeding” and that no charges have been filed against the company or its executives at this time.
From their investigation reports over 300 persons were involved in this crime and the majority of the perpetrators were revealed to be Bulgarians who carried out this operation on the country’s soil.
Nexo has issued a statement in response to the investigation, saying that it is fully cooperating with the authorities and that it has not been charged with any crime.
The company also emphasized that it has stringent compliance procedures in place to prevent money laundering and other illegal activities.
The allegations against Nexo come as a surprise to many in the crypto community, as the company has a reputation for being one of the most reputable and compliant crypto lending platforms.
Neck has been in operation since 2018 and has built a loyal customer base by offering competitive interest rates on crypto loans and a wide range of other financial products.
Bulgaria Enforcing Crypto Regulations
The investigation also highlights the growing scrutiny faced by crypto companies as regulators around the world devise means to regulate the rapidly evolving industry.
While many governments have been slow to act, Bulgaria has been relatively proactive in its efforts to regulate the crypto space.
The country’s Financial Supervision Commission has been working to establish a framework for the oversight of crypto companies, and has already issued warnings to several companies that it believes are operating illegally.
It is unclear at this time what impact the investigation into Nexo will have on the company’s operations or on the broader crypto industry. However, it is likely to raise concerns among investors about the risks associated with crypto lending platforms.
Following the circulation of this investigation report, over $3 million was pumped out from the platform.