Nexo Seeks $3 Billion in Damages from Bulgaria
Nexo AG, a Swiss-based crypto lender, is requesting $3 billion in compensation from Bulgaria following an abandoned criminal investigation. The company alleges that the inquiry, which took place in January 2023, harmed its reputation and shareholder value. Nexo also claims that the probe disrupted its plans for a U.S. stock market debut and a soccer sponsorship deal.
Legal Filing with the ICSID
Nexo AG recently filed a document with the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank. The filing states that the investigation had tarnished the company’s reputation and destroyed shareholder value.
Bulgaria’s Finance Ministry has acknowledged the ICSID’s arbitration request but emphasizes that further review will be conducted before proposing the next steps. The prosecutor’s office, which is also involved in the case, has not commented on the matter.
About Bulgaria’s Investigation
In January 2023, Bulgarian prosecutors launched an investigation into Nexo AG and accused its founders, including former Bulgarian lawmaker Antoni Trenchev, of various offenses such as participating in an organized crime group, money laundering, tax fraud, and computer fraud. However, the case was dropped last month due to a lack of evidence and a legal framework for crypto asset services in Bulgaria.
Nexo has consistently denied any wrongdoing and claimed that the probe was politically motivated. The case was registered with the ICSID on January 18, but specific details about the damages sought have not been confirmed.
Nexo Aims to Address Damage to Business and Reputation
As the arbitration proceedings continue, Nexo intends to address the significant harm caused to its business and reputation by the halted investigation in Bulgaria. The $3 billion damages claim highlights the severity of the allegations against Nexo and sets the stage for a complex legal battle between the crypto lender and Bulgarian authorities.
Hot Take: Nexo’s Battle for Compensation
Nexo AG’s request for $3 billion in damages from Bulgaria showcases the potential consequences that an abandoned criminal investigation can have on a company’s reputation and shareholder value. The case highlights the challenges faced by cryptocurrency businesses in navigating legal frameworks and political influences. As the arbitration process unfolds, it will be interesting to see how Nexo’s claims are evaluated and whether they will be awarded the compensation they seek.
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