Nexo has refuted claims that there have been significant cash outflows from the crypto platform as a result of office raids and an ongoing investigation into the company.
Following extensive raids at the company’s offices in Sofia, Nexo has expressed complaints about the activities of law enforcement officials in response to the investigation into the firm and has announced plans to file a lawsuit against the Bulgarian government.
According to reports, the crypto lender is preparing to sue the government for damages caused by the sudden police intervention. Nexo claims that inspectors did not provide their names, and investigators allegedly took hours to produce a search warrant.
The company believes the raids on its offices yesterday were illegal and showed the perpetrators’ complete incompetence. A thriving business was allegedly intended to be destroyed and looted, according to Nexo, which also referred to the activities against the company as local Bulgarian arbitrariness.
The company clarified that it does not provide services to Bulgarian citizens due to potential problems with the local government. In addition to partnering with major crypto intelligence companies like Chainalysis, the company reaffirmed that it has complied with Anti-Money Laundering regulations and sanctions against Russia.
According to Siyka Mileva, a spokeswoman for the chief prosecutors in Bulgaria, more than 300 police officers, prosecutors, and agents of the national security agency were involved in the investigation into Nexo.
Nexo expressed confidence that it would win in the lawsuit, noting that the compensations Bulgaria would have to pay after Nexo’s claims were made and won would be another record-breaking sum of hundreds of millions of dollars, but regrettably at the expense of the Bulgarian taxpayer.
The present withdrawals on the platform are regular, given the general market conditions, according to a Nexo representative who denied any unusual outflows. The representative stated that the withdrawals represented 2% of Nexo’s $2.3 billion assets under management.
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