major crypto lender nexo The company’s office in Bulgaria has been hit by a tsunami of customer withdrawals after police raided it.
Nexo’s Sofia, Bulgaria office was raided on Thursday at more than 15 sites in Sofia, Reuters. Reported, It added that more than 300 investigators, police and security officers were involved in the operation.
Multiple media outlets have reported that Nexo is under investigation for fraud, money laundering and tax evasion. one in Statement From the Bulgarian prosecutor’s office, Nexo’s business was referred to as “an illegal criminal activity”.
“In Sofia, active steps are being taken as part of a pre-trial investigation aimed at neutralizing an illegal criminal activity of the crypto lender Nexo,” Siaka Mileva, spokeswoman for the Bulgarian prosecutor’s office, said during a press conference. “
customers rushed to withdraw
Not surprisingly, the raid on several NEXO sites in Sofia has led to a spurt in customer withdrawals from the crypto lending and borrowing platform.
The outflow was highlighted on Twitter by blockchain intelligence firm Arkham, which said it had recorded a “flood of outflows” from Nexo’s on-chain wallet following the raid.
On-chain tracking firm Cielo also took to Twitter to share data that it said shows “large NEXO withdrawals and movements”.
Screenshots in the tweet show several large transactions worth hundreds of thousands of dollars sent from a Nexo-controlled wallet.
Nexo “Never Compromises” on Compliance
The crypto lender itself also commented on the raid on Twitter, stressing that it has always tried its best to be fully compliant throughout its years in business.
Nexo said, “Over the years, we have turned away many businesses because Nexo never compromises on our strict Anti-Money Laundering and Know Your Customer policies.”
The company said in a follow-up tweet that it always cooperates with the authorities. This has been done despite the fact that “some regulators have recently adopted kick first, ask questions later,” it said.
Nexo is shutting down US business
The raid on Nexo’s offices in Sofia comes after the company’s December Phase out your business in the US after hitting regulatory hurdles in the country.
“Our decision comes after more than 18 months of good-faith negotiations with US state and federal regulators, which have come to an impasse,” Nexo said on its website at the time.
unchanged token price
Despite the bad news coming out of Bulgaria, the price of Nexo’s own NEXO token has remained almost unchanged over the past 7 days. At the time of writing, the coin is trading at $0.712, down 0.3% over the past 24-hours and down only 0.8% over the past 7 days.
Nexo is headquartered in London today, but the company was founded by Bulgarian entrepreneurs Antoni Trenchev, Kosta Kantachev and Kalin Metodiev.
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