Crypto Lender Nexo AG Sues Bulgaria for $3 Billion
Crypto lender Nexo AG and its subsidiaries have filed a $3 billion lawsuit against the Republic of Bulgaria. The claim is for damages and “lost opportunities” resulting from Bulgaria’s wrongful investigations into the company and its executives. The investigations, involving allegations of money laundering, computer fraud, and tax offenses, eventually ended with no evidence of wrongdoing found. However, the probe had a significant impact on Nexo’s brand and reputation, causing the loss of lucrative business opportunities and damaging the company’s investments in Bulgaria. Nexo had been in talks with US investment banks and a major European football club for potential partnerships and projects that were abandoned due to the investigation.
Documents Filed with the World Bank’s International Centre for Settlement of Investment Disputes
Nexo AG’s Swiss unit, Nexo Capital, has filed an arbitration claim with the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) for over $3 billion against Bulgaria. The claim cites damages and lost opportunities caused by Bulgaria’s “wrongful and politically motivated actions” against the company and its executives. This pertains to unjustified and oppressive criminal investigations that were subsequently dismissed for lack of merit. Nexo AG alleges that the investigation damaged its reputation and shareholder value. The company’s lawsuit seeks compensation for the harm caused by Bulgaria’s actions.
Legal Representatives Believe in the Strength of Nexo’s Claim
The law firm Pillsbury Winthrop Shaw Pittman LLP, representing Nexo, expressed confidence in the strength of Nexo’s claim. Deborah Ruff, head of arbitration at the firm, stated that they are determined to fight for justice on behalf of their clients. The impact of the investigation on Nexo’s brand and reputation resulted in the loss of valuable business opportunities and harmed the company’s investments in Bulgaria. Nexo was in advanced stages of negotiations with US investment banks for funding and an initial public offering, as well as establishing a strategic alliance with a major European football club.
Hot Take: Nexo Seeks Compensation for Damages Caused by Bulgaria’s Actions
Crypto lender Nexo AG and its subsidiaries have filed a $3 billion lawsuit against Bulgaria, seeking compensation for damages and lost opportunities resulting from the country’s wrongful investigations. The Bulgarian authorities launched an investigation into Nexo over allegations of money laundering, computer fraud, and tax offenses. However, the investigation was later dismissed for lack of merit, as no evidence of wrongdoing was found. This investigation had a significant impact on Nexo’s brand, reputation, and business activities. The company was in talks with major US investment banks and a European football club for potential partnerships, all of which were abandoned due to the investigation. Nexo believes it has a strong claim and is determined to fight for justice.
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