Authorities in Bulgaria are probing crypto lender Nexo on the accusation of laundering money, tax fraud, unregistered banking, and online scams. According to Bulgarian National Television, It is suspected that the Bulgarians behind the large corporation followed Ruzha Ignatova’s OneCoin Ponzi scheme. The FBI has listed the Bulgarian as one of the top ten most wanted people. Europol and Interpol are both looking for her.
Crypto Lender Nexo is headquartered in Sofia, Bulgaria
Prosecutors, National Investigation Service investigators, and DANS law enforcement agents, together with foreign intelligence agencies, have officially started searching the Bulgarian office buildings of the firm that trades cryptocurrencies across the world.
The company has its headquarters in Sofia, Bulgaria, and encourages clients to open bank accounts in Bitcoin and other cryptocurrencies to receive high returns. The interest rate offered to investors was several times that of regular bank deposits. As per reports, the company’s Bulgarian founders misused a substantial part of the significant assets worth several billion dollars.
The scheme’s main coordinators are Bulgarian residents, and the operation was conducted mainly from the Bulgarian region,” Attorney General Siika Mileva stated in a statement. “Proof has been collected that an individual who utilized the platform and transmitted cryptocurrencies has been formally declared a terrorist financing person,” the statement says.
The investigation into the crypto firm’s activities in the nation was initiated a few months ago after international services discovered fraudulent transactions primarily directed at flouting sanctions placed by the European Union, the United Kingdom, and the United States on Russian banks, as well as businesses and Russian people.
Nexo stated that it is cooperating with relevant agencies and regulatory bodies
Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/
— Nexo (@Nexo) January 12, 2023
Nexo stated on Twitter that it is cooperating with authorities and regulatory agencies. It asserted to have stringent anti-money-laundering (AML) and know-your-customer (KYC) guidelines and tried to claim to be wrongfully targeted.
It went on to say that, due to the recent regulatory crackdown on cryptocurrency, some regulators have recently implemented the kick first, later ask questions strategy. It boundaries on conspiracy to commit in corrupt governments, but this too shall pass.
The FBI has been probing the Bulgarian crypto bank for a $4 billion hole in its financial statements, fraudulent economic exercise – lending in exchange for securities – and updates of misuse of its clients’ equities and goods.
According to the DFPI official statement, Nexo provides the appropriate annual interest rate of up to 36% on stored crypto assets, which were substantially higher than the rates on short-term investment-grade fixed-income instruments or financial institution savings. The Nexo platform has been utilized for 3.6 million transactions bringing the total to more than $94 billion in the last five years, according to a spokesperson for Bulgarian Chief Prosecutor Siika Mileva.
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