Nexo Co-Founder Considers Suing Bulgaria for $1 Billion

[Gunnar Larson]

Trenchev claimed that the state’s actions were not only illegal, but caused
significant harm to his company’s reputation.

Nexo itself also implied that its entanglement with the law had corruption
at its core, shortly after the raid. “Some regulators have recently adopted
the kick first, ask questions later approach,” stated Nexo. “In corrupt
countries, it is bordering with racketeering, but that too shall pass.”

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https://cryptoadventure.com/nexo-co-founder-considers-suing-bulgaria-for-1-billion/


Nexo co-founder Antoni Trenchev said his company may sue the Bulgarian
government for $1 billion following a raid on Nexo’s offices earlier this
month.

Trenchev claimed that the state’s actions were not only illegal, but caused
significant harm to his company’s reputation.

Repairing a Damaged Reputation
During an interview with Nova TV, Trenchev called claims that his company
is involved in money laundering and terrorist financing operations
”absurd.”

“We, as an institution, monitor all incoming and outgoing transactions on
our platform in real-time,” he explained. Nexo put out a similar statement
on the situation weeks ago, claiming to possess over 30 AML compliance
officers monitoring OFAC sanctions lists

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Such claims were grounds for the government’s raid on Nexo’s offices on
January 12. News of the raid was shortly followed by an influx of
withdrawal requests from its platform, during a period marred by widespread
turbulence and uncertainty for the crypto lending industry in general.

“Our consultants estimate the damages at over 1 billion dollars,” said
Trenchev. “We were in the process of listing on the American stock exchange
and now it has to be postponed because of the reputational damage that was
done to us.”

Specifically, Bulgaria accused Nexo of having served multiple wanted
criminals. Transactions surrounding one of them – Mahmoud Mohammed – with
which the prosecutors’ office took concern were made two years before
Mohammed was on the Israeli services’ list., according to Trenchev.

Political Corruption
Ultimately, the co-founder believes that Nexo’s debacle with the
prosecutors’ office is politically motivated. The latter’s raid on Nexo’s
office took place just one day before President Rumen Radev was to give his
final mandate forming an acting government.

While some expected that mandate to go to Democratic Bulgaria (DB), it
ultimately went to the Bulgarian Socialist Party (BSP). The former party
was known for having received donations from over 12 Nexo members.

“It was an opportune moment to resoundingly attack parties like PP and DB
and to sabotage the third mandate,” said Trenchev about the prosecutors’
move.

Nexo itself also implied that its entanglement with the law had corruption
at its core, shortly after the raid. “Some regulators have recently adopted
the kick first, ask questions later approach,” stated Nexo. “In corrupt
countries, it is bordering with racketeering, but that too shall pass.”
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