Key takeaways:
- The crypto lending site Nexo’s co-founder Antoni Trenchev stated the business is planning to sue the Bulgarian authorities for more than $1 billion.
- The co-founder denied claims that the organization’s members are involved in organised crime, money laundering, and terrorist financing schemes.
As part of the most recent moves by regulators to tighten down on the cryptocurrency business, the US Securities Exchange Commission (SEC) has sanctioned the cryptocurrency lending company Nexo for issuing and selling unregistered securities.
The latest development in the case comes as Antoni Trenchev, co-founder of the crypto lending platform Nexo, stated that the business may sue the Bulgarian government for more than $1 billion for invading its offices and damaging its reputation.
The co-founder also denied claims that the group’s members operate a criminal organisation, engage in money laundering, and finance terrorism.
The Israeli services’ restricted list of sought individuals includes Mahmoud Mohammed, who Trenchev expressly denied knowing. Trenchev clarified, contradicting the stated contention of the prosecution, “Besides, he is not a client of Nexo.”
He clarified that the payments being discussed by the prosecutor’s office in Bulgaria are incoming transfers from Mahmoud Mohamed to the address on his wallet.
He added that they were created two years prior to his inclusion on the list.
The Bulgarian authorities asserted that their operations were indeed a component of an international probe, although no foreign partners have supported these claims.
The Bulgarian prosecution, according to Nexo, has been misrepresenting the facts involving the funding of terrorist operations through transactions on its platform.
What is happening in Bulgaria has a very slight impact on my company and personal plans.” Antoni Trentchev, made a statement during his initial interview with Nova TV.
A few days ago, Nexo Capital consented to pay a compensation of $45 million to the North American Securities Administrators Association (NASAA) and the U.S. Securities and Exchange Commission (SEC) for reportedly not registering the offering and sale of its EIP-Earn Interest Product.
Trenchev’s threat to file a lawsuit caused Nexo and the Bulgarian government’s conflict to worsen.
He added that the harm caused to Nexo’s reputation is worth more than $1 billion according to the consultants. Given the damage done to its prestige, the company’s planned listing on the American stock exchange now stands delayed.
