Nexo Files $3 Billion Arbitration Claim Against Bulgaria Following Investigation
Crypto lending firm Nexo has submitted a $3 billion arbitration claim against the Republic of Bulgaria after the government concluded a year-long criminal investigation into the company and its founders. Nexo argues that the investigation was unjustified and politically motivated, causing significant damage to its reputation and resulting in lost business opportunities. The company claims that it had to abandon plans for a funding round with three leading U.S. banks and an IPO on a major U.S. stock exchange due to the lawsuit. Additionally, Nexo states that it was finalizing a strategic alliance with a major European football club, which was also affected by the investigation.
Nexo Seeks Reparations for Damages
Nexo co-founder Antoni Trenchev stated that now that the Bulgarian Prosecutor’s Office has cleared them of wrongdoing, they are seeking reparations for the financial and reputational harm suffered. Trenchev emphasized that this is not just a case against Bulgaria, but a fight to prevent similar unjust actions against others in the future. He hopes that their actions will demonstrate that there are consequences for such unnecessary value destruction.
Bulgarian Investigation Clears Nexo of Wrongdoing
The Bulgarian prosecutor’s office initiated an investigation into Nexo last January, including a high-profile raid on the company’s offices. However, after months of scrutiny and audits, the government admitted that it had no evidence to support allegations of money laundering or tax crimes by Nexo’s founders. The prosecutor’s office also highlighted that virtual assets are not regulated or recognized as money or deposits in Bulgaria or any EU country.
Allegations of Political Motivation
Nexo co-founder Trenchev argued that the investigation and attack on their offices were politically motivated from the beginning. He claimed that the intention was to harm a competing political party that had received donations from Nexo employees. The company believes that by filing the arbitration claim, they can demonstrate the consequences of such actions and prevent similar incidents in the future.
Hot Take: Nexo Fights for Justice and Accountability
Nexo’s decision to file a $3 billion arbitration claim against Bulgaria showcases their determination to seek justice and hold those responsible accountable. The company asserts that the investigation was baseless and driven by political motives, resulting in significant reputational and financial damage. By taking legal action, Nexo aims to prevent similar injustices from happening to others in the crypto industry. This case highlights the importance of transparency, fair treatment, and regulatory clarity for companies operating in the cryptocurrency space.
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