After an extensive and meticulous investigation, Bulgaria’s Prosecutor’s Office announced the closure of the high-profile inquiry into the cryptocurrency firm Nexo. The decision, arrived at on December 22, stemmed from the absence of compelling evidence substantiating allegations of money laundering, tax infractions, or illicit financial services provision without proper authorization.
The investigation, which spanned a considerable period, initially involved four individuals – Kosta Kanchev, Antoni Trenchev, Kalin Metodiev and Trayan Nikolov – who were implicated in purportedly orchestrating an organized criminal group from 2018 through January 2023. Central to the accusations were claims of unauthorized banking activities conducted via the Nexo online platform, encompassing lending, deposit-taking and interest-related transactions without adherence to mandated banking regulations.
Throughout the probe, testimonies from various witnesses, including individuals under protected identities, were sought and examined. Despite a substantial allocation of resources and efforts, supervising prosecutors concluded that the evidence failed to substantiate the allegations levelled against Nexo or its associates. The absence of a specific legal framework governing cryptocurrency-related operations in Bulgaria posed a challenge in assessing the case thoroughly.
Additionally, insights gleaned from the investigation suggested that Nexo’s operations might have been conducted through an online platform operating beyond the purview of Bulgarian jurisdiction. While regulatory authorities in multiple U.S. states initiated actions against Nexo for purportedly offering unlicensed financial services, a resolution was reached with U.S. authorities, asserting Nexo’s non-engagement in fraudulent practices and concluding administrative proceedings in eight states.
Antoni Trenchev, one of the accused individuals, expressed relief at the investigation’s closure, emphasizing the absence of any substantial wrongdoing by Nexo. The inquiry commenced with a raid on Nexo’s Sofia offices in January, following suspicions surrounding its operations facilitated through “shell companies”. Allegations surfaced regarding transactions exceeding billion and associations with individuals potentially involved in terrorist financing during the investigation’s course.
Ultimately, the supervising prosecutors’ decision hinged on the lack of concrete evidence linking Nexo or its associates to criminal activities, leading to the discontinuation of the protracted criminal proceedings. (Novinite/Business World Magazine)