Bulgarian Investigation Clears Nexo of Cryptocurrency Misconduct Allegations

Bulgarian authorities have cleared cryptocurrency lender Nexo and its executives of any wrongdoing, stating that there is no substantial evidence to support the allegations against them. The investigation, which began in January 2023, focused on four top executives of Nexo, including co-founders Kosta Kanchev, Antoni Trenchev, Kalin Metodiev, and Trayan Nikolov. The probe was prompted by concerns over Nexo’s involvement in the cryptocurrency market following the collapse of FTX. However, the Bulgarian Prosecutor’s Office concluded that Nexo’s services do not fall under the category of financial instruments according to current laws, which significantly impacted the outcome of the investigation. Nexo co-founder Antoni Trenchev welcomed the closure of the investigation and reaffirmed the company’s commitment to regulatory compliance and ethical business practices. He also suggested that there may have been political motives behind the investigation. The future regulatory challenges for Nexo in the cryptocurrency industry remain uncertain.