Is Nexo involved in money laundering?

Embattled exchange Nexo is going through torrid times as emerging reports say regulators have raided its offices. In the details made available by Standart, the search team comprising several prosecutors, agents, and other financial regulators was among the team raiding the exchanges offices in Bulgaria. According to the details published, the raid was part of ongoing investigations into the conduct of the exchange.

Regulators raid its Bulgarian offices

The investigation into the company was reportedly started some months ago over violations of the sanctions against Russia. The company was also accused of being in the middle of a large money laundering operation. Several news sources claimed that Nexo was one of the biggest suspects in the ongoing investigation.

The reports also said that the exchange had ties to several members actively serving in the country’s government. Some members include Antoni Trenchev, an ex-member of the parliament, and Lydia Shuleva, the daughter of a former prime minister, among others.

Nexo allays fears over raid

Nexo has also released a statement tackling the issue and absolving itself of any potential blame. Taking to Twitter, the company assured its users not to be anxious over the news and remain calm as they are on top of the situation. The company confirmed that it had nothing to hide and has always been a strict enforcer of several anti-money laundering procedures. It also has several technologies deployed to enforce strict KYC. Nexo mentioned that the regulators decided they would act first and invite them for questioning later, hence the move earlier today.

The exchange noted that they have not dabbled in anything illegal and had to kick off some business to ensure a clean slate. Nexo has been operating in the crypto sector since 2018, allowing users to invest in several digital assets on its platform. It also allows users to use its staking and borrowing feature against deposited digital assets. The exchange was first targeted in the United States last year after a regulator in California filed a cease and desist order due to the kind of services the exchange was offering. After several talks with regulators and stakeholders across the country, the company decided to close down its business and move abroad.