Antoni Trenchev, the co-founder of cryptocurrency lending platform Nexo, has said that the company is considering filing a $1 billion lawsuit against the Bulgarian government for its insistent attacks on the company.
Nexo Could Sue the Bulgarian Government
In early January, Nexo’s offices in the Bulgarian capital Sofia were raided by over 300 local police officers on suspicion of money laundering and tax evasion offenses. Nexo was also accused of other offenses related to unlicensed banking activities.
At the time, Nexo denied all of the accusations brought by the Bulgarian authorities. Antoni Trenchev said the attack was “absurd and illegal.” The reputational damage of the action has made Nexo halt its listing process on the US stock exchange.
In a recent interview, Trenchev said Nexo’s consultants had estimated the damages done by the government at over $1 billion. He adds that the crypto lender is now considering legal action against Bulgaria.
Why is Nexo Under Attack in Bulgaria?
Although the Bulgarian authorities have denied the investigation being politically inspired, Nexo executives disagree. Nexo employees had previously donated significantly to the opposition Democratic Bulgaria political alliance.
On the Flipside
- Nexo recently paid $45 million in penalties to the U.S. SEC over allegations of offering crypto lending products without complying with regulations.
Why You Should Care
If Nexo goes ahead with the move, it would be the biggest legal action taken by a crypto company against any government.
Bulgaria’s attack on Nexo is covered in:
Nexo’s Office in Bulgaria Raided on Suspected Money Laundering and Tax Crimes
Find more details on its regulatory violation below:
Nexo Admits Regulatory Violation, Set to Pay $45M Fine