Crypto Loan Platform, Nexo, Freed From Allegations Of Money Laundering

Nexo, a leading crypto company is free from money laundering charges. (Photo; Bitcoinist)

JAKARTA Nexo, one of the world's largest crypto loan platforms, has been acquitted of all charges of money laundering and sanctions violations in Bulgaria. The Office of the Attorney General of the Republic of Bulgaria announced last week that the Sofia City Prosecutor's Office had ended the legal process against Nexo after finding no evidence of criminal activity.

Nexo is a company that provides loan and deposit services using crypto assets as collateral. Nexo also offers daily interest of up to 12% per year for crypto assets stored on its platform. Nexo claims to have more than 6 million users worldwide and has processed more than $130 billion (approximately IDR 2,005 trillion) of transactions since its founding in 2018.

On September 29 last year, Nexo was the target of an investigation by Bulgarian law enforcement officials over alleged money laundering and sanctions violations. The investigation is based on a report from the Central Bank of Bulgaria (BNB) which considers that Nexo is carrying out banking activities without appropriate permits.

According to an announcement from the Attorney General's Office, the investigation involved interviews with witnesses, analysis of payment account movements, complex forensic reports and evaluations, as well as various investigative actions such as investigations and confiscations. However, after conducting an investigation for almost three months, the supervisory prosecutor team found no evidence of a crime committed by Nexo.

"The Sofia City Prosecutor's Office has ended the pre-trial process against Nexo and four other people involved in the organized crime group that was formed to seek profit between 2018 and January 2023," the announcement read.

"There is no evidence of criminal activity related to the implementation of banking activities without appropriate permits. There is no evidence of money laundering collected against the defendant, and there is no evidence of taxation or computer fraud collected," the announcement continued.

Crypto Regulation Factors In Bulgaria

One of the factors influencing the prosecutor's decision is the status of cryptocurrency regulation in Bulgaria. Noting that Bulgaria does not have a special legal framework for services involving crypto assets, the prosecutor's office states that Nexo's activities are not regulated, and there are no requirements for permission, registration, or license.

"It can be concluded that the product offered by Nexo is not a financial instrument. The provision of services to clients related to this product is not included in the scope of investment services," explained the prosecutor's office, explaining:

"Given that crypto assets are currently not financial instruments, their trade is also not subject to regulations. Virtual currencies are not recognized as legal tender in Bulgaria, and their activities are not classified in Article 4 of the Payment Services and Payment System Act."

Nexo welcomed the prosecutor's decision and stated that this demonstrates the company's commitment to complying with the highest laws and standards in the crypto industry. Nexo also thanked its users, partners and communities for their support during the legal process.

"We are very pleased with this result and feel relieved that our good name has been restored. We are always convinced that we are innocent and that this investigation has no solid legal basis," Antoni Trenchev, co-founder and management partner Nexo, said in a statement.

"We hope that this decision will set a positive precedent for the crypto industry in Bulgaria and around the world, and will encourage the development of clearer and more friendly regulations for crypto assets," he added.

Nexo said that the company will continue to operate as usual and provide the best service to its users. Nexo also plans to launch new features on its platform, such as zero-cost crypto exchanges, futures trading with leverage of up to 50x, and crypto purchases with debit or credit cards.