Antoni Trenchev – co-founder of cryptocurrency lending platform Nexo – said the company could sue the Bulgarian government for more than $1 billion for raiding its offices and undermining its reputation.
He also refuted rumors that members of the entity lead an organized criminal group and engage in money laundering and terrorist financing operations.
“We will defend our interests”
The clash between Nexo and Bulgarian authorities escalated after Trenchev sworn take the dispute to court:
“Our consultants estimate the damage at more than a billion dollars. We were in the process of being listed on the US stock exchange, and now it has to be postponed because of the reputational damage done to us. – he Explain.
The executive claimed the actions of the Bulgarian prosecutors for raid the offices in the capital Sofia were “absurd, unnecessary and a large part of them – illegal”.
The Nexo Scandal happened just a day before President Rumen Radev was set to give the third and final term to form an interim government. Some speculated that Democratic Bulgaria (a center-right political party that had pledged to tackle corruption and implement several judicial reforms) had the best chance of receiving the mandate.
However, it was revealed that more than a dozen Nexo employees had already made significant donations to the aforementioned party, which could have affected the president’s decision. He finally gave the mandate to the Bulgarian Socialist Party (BSP).
Trenchev agreed with the assumption that the raid on Nexo’s offices precisely that day was a public relations move orchestrated by the prosecution. He also admitted knowing the leader of Democratic Bulgaria – Hristo Ivanov:
“I know Hristo Ivanov. I was part of public life in Bulgaria years ago. But I don’t see how that’s relevant. We are a handful of people in Bulgaria.
The Nexo boss said people are free to donate and see nothing wrong with those who have donated funds to Democratic Bulgaria since they have publicly registered and reported everything to the Audit Office.
Despite the confrontation, Trenchev assured that the crypto lender still has a solid base of five million customers and processes millions of transactions every day.
Pay 45 million dollars in the United States
In addition to its problems in Bulgaria, Nexo recently OK to pay $45 million in penalties to the US SEC and NASAA over allegations that it offered crypto lending products without complying with necessary regulations. Commenting was Gary Gensler – Chairman of the SEC:
“We accused Nexo of failing to register its retail crypto lending product before offering it to the public, circumventing essential disclosure requirements designed to protect investors. Following our proven public policies is not a choice.
When crypto companies fail to comply, we will continue to follow the facts and the law to hold them accountable. In this case, among other actions, Nexo is ceasing its non-registered lending product for all US investors.
Nexo confirmed the fines, saying it was pleased to have engaged in “constructive dialogue” with the watchdog and resolved all issues.
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