Key takeaways:
- The company Nexo has denied claims that there have been significant withdrawals due to office searches.
- According to the Bulgarian News Agency, Nexo reportedly protested to law enforcement over their handling of the firm’s continuing probe.
After extensive raids at the company’s offices in Sofia, troubled cryptocurrency company Nexo plans to file a lawsuit against the Bulgarian authorities. To stop Nexo, the Bulgarian Prosecutor’s Office investigates its unlawful activities in Sofia. More than 300 people are working on the project.
The Bulgarian News Agency stated on January 13 that Nexo had complained about the responses taken by law enforcement to the firm’s probe.
According to reports, the corporation is getting ready to sue the government to get paid for the harm the abrupt police intervention caused. According to a report, inspectors were never introduced while investigators allegedly took hours to produce a search warrant.
In the company’s opinion, the raids on Nexo’s offices yesterday were illegal and showed the perpetrators’ complete incompetence. Additionally, Nexo referred to the proceedings against the company as “local Bulgarian arbitrariness,” which allegedly sought to demolish and plunder a successful company.
The company also made clear that due to potential problems with the local authorities, Nexo does not provide any services for citizens of Bulgaria. The business reaffirmed its compliance with anti-money laundering regulations, sanctions against Russia, and participation in leading crypto intelligence organizations like Chainalysis. The company affirmed that it is confident it will win the lawsuit, which would award Nexo damages for the harm the investigation caused, and continued:
“The compensations that Bulgaria will pay after the claims are filed and won by Nexo will be another record-breaking amount of hundreds of millions, but, unfortunately, they will be at the expense of the Bulgarian taxpayer.”
According to Siyka Mileva, a spokeswoman for Bulgaria’s senior prosecutors, the investigation into Nexo involved more than 300 police officers, prosecutors, and members of the national security apparatus. She further mentioned that as of January 12, Bulgaria is the only country under investigation, with local police searching 15 homes connected to Nexo.
Since the news surfaced, Arkham Intelligence, a crypto analytics website, said that Nexo has experienced “floods of withdrawals.” Blockchain tracker Cielo Finance also observed significant withdrawals from Nexo, which highlighted transactions on January 12 in which more than 200,000 USD Coin left the network.
According to some reports, the probe was also being conducted by a few foreign authorities. The announcement from Nexo came shortly after the business witnessed significant outflows amid rumors of an investigation.
