Four Bulgarian Residents Accused Of Being Involved In Tax Fraud And Money Laundering Related To Nexo

Nexo, denies making any money laundering mistakes. (photo: twitter @nexo)

JAKARTA - Four Bulgarians have been charged with participating in an organized crime group in the country, which was formed to launder money and commit tax and computer fraud. This was revealed by investigators and prosecutors investigating crypto lender Nexo on Friday, January 13.

Prosecutors on Thursday January 12 said they had launched an investigation into alleged illegal activities carried out by Nexo, as well as carried out raids at the lender's office and 14 other locations in the capital Sofia.

"This is an unprecedented investigation," Borislav Sarafov, head of Bulgaria's National Investigation Service, told reporters. He also said Bulgaria would lead an investigation that began a few months ago in coordination with the US, UK, and other partners.

Investigators said they examined more than 4 million crypto transactions on the Nexo platform and found some were made to violate EU and US sanctions against Russia, while others involved someone known to fund "terrorist" activity.

Crypto lender, Nexo, denied making the mistake when contacted by Reuters.

"There have been a series of allegations, all of which were strongly denied by Nexo as the platform uses the highest possible standards in connection with the practice of recognizing your customers and anti-money laundering to ensure the safety of our customers and companies as well," he said in a statement to Reuters.

The company said it was a politically motivated campaign target ahead of the early elections in Bulgaria. It said that the system is active and running at the moment, and everything is being processed in real time.

More than 20 people have been questioned so far and Nexo's international financial audit will be conducted, while prosecutors said the investigation would likely take months.

Para pejabat mengatakan dua dari tersangka telah ditahan dan jaksa penuntut akan meminta jaminan masing-masing sebesar 1 juta levs (Rp8,3 miliar), sementara surat perintah penggeledah dikeluarkan untuk dua lainnya.

According to Bulgarian officials, the four suspects have been operating in the UK, Switzerland, Bulgaria, and the Cayman Islands since 2018.

According to the Bulgarian prosecutor's office, about 300 investigators, police officers, and security officers were involved in the operation on Thursday, which is part of an investigation "destincated to neutralize Nexo's illegal criminal activities".

Prosecutors on Friday said defendants had luxury properties in Dubai and the Bahamas, including yachts. About 35 works of art, including the work of Salvador Dali painters Henri Matisse and Pablo Picasso, have been confiscated from one of the suspects, investigators said.

According to Bulgarian prosecutors, $94 billion in crypto transactions was carried out through the Nexo platform in the last five years.

Investigators say they have detected a number of transactions in the Nexo from people and companies sanctioned by the European Union and the US against Russia, as well as other UN sanctions, without elaborating.

Crypto lenders act like banks for the crypto world, which offers customers interest in the cryptocurrencies they deposit on the platform.

Lawmakers around the world have stepped up calls for crypto company regulation following the collapse of the main stock exchange, FTX, last year.

In December, Nexo said it would remove products and services in the US over the coming months due to clashes with regulators.