Crypto lender Nexo has launched a lawsuit against Bulgaria. In its petition, the crypto platform is demanding $3 billion in damages from the Bulgarian state for the unjustified criminal investigations it has suffered at the hands of the country’s authorities. Nexo believes that these investigations have tarnished its reputation, compromising certain business opportunities in the process.
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Bulgarian government sued
Crypto lender Nexo has filed an arbitration suit against the Republic of Bulgaria. In its claim, the company Nexo demands payment of $3 billion in damages from the Bulgarian authorities.
Indeed, Bulgarian prosecutors have opened a criminal investigation against Nexo in January 2023. Accused of money laundering and violating sanctions against Russia, Nexo had seen its premises searched in Bulgaria. The search led to a wave of cash withdrawals by the platform’s users, despite the company’s reassuring tone. In December 2023, prosecutors finally dropped the investigation, deeming that there was no evidence of criminal activity.
This criminal investigation affected Nexo‘s reputation. Indeed, according to Antoni Trenchev, co-founder of Nexo, a number of business opportunities were considerably delayed or lost because of it. The company cites as an example the failure of an IPO project in the United States with an initial valuation of between $8 and $12 billion. Nexo also claims to have missed out on a multi-year deal with a famous European soccer club.
Timid reactions from the Bulgarian authorities
At this time, the Bulgarian authorities are refusing to comment on the case. Contacted by Reuters, Assen Vassilev, Bulgarian Minister of Finance merely acknowledged receipt of the request for arbitration and indicated that the request would be examined by a specialized inter-ministerial committee.
We welcome the fact that Nexo is exploring all legal means to obtain justice against Bulgaria’s excesses. It’s through actions like these that the crypto ecosystem will gain respect and legitimacy. It remains to be seen what action will be taken in response to Nexo’s request…
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.