The Sophia office of crypto lender was raided last month on allegations of money laundering and tax fraud. Prosecutors have charged four individuals but Nexo co-founder said it is ludicrous.
Antoni Trenchev, co-founder and managing partner of Nexo is having none of it even though prosecutors are pressing charges.
Denied any wrongdoings
Nexo co-founder, Antoni Trenchev, has denied any wrongdoing after the police raided the company on suspicion of money laundering.
Recall that the Sophia office of the crypto lending company was raided by authorities following the suspicion that the company was being used as a conduit for money laundering activities and tax fraud.
Four charged for organized crime
The investigation over the matter is still ongoing, but Trenchev has made a statement regarding the matter. This is even though the Bulgarian prosecutors have charged four individuals as part of the investigation.
The charges include the formation of an organized crime syndicate involved in the laundering of funds, running banking activities without a license, and computer and tax offenses.
Loud press conferences
In a reaction to the charges, Trenchev, who is a former member of the country’s parliament, described them as “ludicrous,” maintaining that there’s no better word for it. During a TV interview with Bloomberg, the Nexo co-founder said,
“They give loud press conferences, they make a bunch of accusations, and they have no follow-through after that.”
Trenchev said that he would likely be among the four persons charged by the Bulgarian authorities, even though he’s yet to be served court papers, officially or unofficially.
“The charges are ludicrous; there is no other word for it,” Trenchev said.
The raid on Nexo grabbed headlines, as more than 300 law enforcement officers participated in the operation. The January operation searched 15 addresses linked to Nexo.
A cease and desist order
Last December, the London-based firm stopped serving the US market after receiving a cease-and-desist order from several states in the country. The main area of conflict was its interest-earning products.
Nexo is one of the crypto firms that have come under the searchlight of investigators in recent times. The attention of regulators has shifted to lending platforms such as Nexo after the crypto market crash that cost investors billions of dollars.