Cryptocurrency Lender Nexo Demands $3 Billion in Damages from Bulgarian Authorities
Cryptocurrency lender Nexo is seeking $3 billion in damages from Bulgarian authorities as a result of a halted criminal investigation that has negatively impacted the company’s plans for a U.S. stock market listing and a soccer sponsorship deal.
In a submission to the International Center for the Settlement of Investment Disputes (ICSID) of the World Bank, Nexo claims that the investigation has not only damaged its reputation but also destroyed shareholder value.
Accusations and Denials
In January 2023, searches were conducted at Nexo offices following allegations by prosecutors of money laundering, tax crimes, and computer fraud dating back to 2018. However, the company’s management vehemently denies all accusations.
In December 2023, the Bulgarian Prosecutor’s Office closed the criminal case against Nexo due to a lack of evidence supporting money laundering, tax evasion, and other crimes.
SEC Fine and Agreement
In mid-January 2023, the U.S. Securities and Exchange Commission (SEC) fined Nexo $45 million for providing unregistered services in the country. The SEC stated that Nexo had been offering cryptocurrency deposit services to American investors since June 2020.
Nexo representatives reached an agreement with the SEC, resulting in a prohibition on providing licensed services in the United States.
Hot Take: Cryptocurrency Lender Nexo Pursues $3 Billion in Damages Following Halted Investigation
Cryptocurrency lender Nexo is seeking $3 billion in damages from Bulgarian authorities after a criminal investigation was closed due to insufficient evidence. The halted investigation has disrupted Nexo’s plans for a U.S. stock market listing and a soccer sponsorship deal, leading to reputational damage and shareholder value destruction.
In addition, Nexo recently faced a $45 million fine from the SEC for providing unregistered services to American investors. This agreement with the SEC now prohibits Nexo from offering licensed services in the United States.
By
By
By
By
By