Bulgarian Prosecutor’s Office Exonerates Nexo in Noteworthy Cryptocurrency Probe

Sofia, Bulgaria – The Bulgarian Prosecutor’s Office has officially concluded its investigation into the prominent cryptocurrency lender, Nexo, in a significant development for the crypto industry. Launched in January 2023 during a period of global market instability, the inquiry focused on four of Nexo’s top executives but has now been closed due to a lack of evidence of any wrongdoing.

The investigation was initiated following the collapse of FTX and the subsequent downturn in the cryptocurrency market. Allegations against Nexo co-founders Kosta Kanchev, Antoni Trenchev, Kalin Metodiev, and Trayan Nikolov included potential involvement in money laundering, tax evasion, and computer fraud. This case emerged amidst increased regulatory scrutiny of the crypto industry, prompted by high-profile failures and fraudulent activities in the sector.

The Prosecutor’s Office has revealed that Nexo’s offerings do not meet the criteria of financial instruments under current regulations. This clarification has had a significant impact on the investigation. Extensive inquiries conducted by Bulgarian authorities found no substantial evidence to support the claims of criminal activity, financial malpractice, or computer-related fraud by Nexo or its executives, as reported by the Bulgarian News Agency.

In response to the closure of the investigation, Nexo’s co-founder, Antoni Trenchev, expressed relief and vindication. He stated that the termination of charges reaffirms Nexo’s commitment to compliance and ethical practices. Trenchev also suggested that the investigation may have been politically motivated.

Tags: Crypto Regulations