Article reading time:
Crypto lending platform Nexo is considering filing a $1 billion lawsuit against the Bulgarian government for persistent pressure on the company.
In early January, more than 300 police officerssearches in several Nexo offices in the capital of Bulgaria, Sofia. The raids were carried out on the platform's suspicion of money laundering, tax evasion and other offenses related to unlicensed banking activities. Nexo denied all accusations made by the Bulgarian authorities, calling the officials' actions absurd and illegal.
The Bulgarian authorities deny that the investigationhas political overtones. However, Nexo executives are insisting on this, as previously the company's employees sent significant donations to the opposition political alliance "Democratic Bulgaria".
The searches resulted in the platform beingforced to suspend the listing process on the American stock exchange. According to Nexo consultants, the damage caused to the company by the Bulgarian government is more than $1 billion. The Nexo management intends to demand these funds from the Bulgarian authorities through a lawsuit.
Nexo sued the regulator last weekCayman Islands for refusing to register the platform as a virtual asset service provider. The team called the refusal unreasonable and stated that the department only focuses on the opinion of other regulators. Crypto lender Nexo recently agreed to pay $45 million to settle US officials accusing the platform of promoting lending products that violate securities laws.