Bulgaria drops Nexo investigation, no proof of fraud


Bulgarian authorities have dropped an investigation into Nexo.

Nexo was a non-MLM crypto Ponzi pitching passive returns of as much as 10% yearly.

Regardless of not being registered to supply securities in Bulgaria and thus working illegally, in closing their investigation the Prosecutor’s Workplace claimed they discovered

 no proof of cash laundering, tax crimes, laptop fraud, and offering banking companies with out a licence.

A US regulatory investigation by the SEC discovered Nexo had laundered ~$9 billion by means of securities fraud. Nexo settled the SEC’s costs in January 2023 for $45 million.

As reported by Sofia Globe, in contrast to their US counterparts, Bulgarian authorities are unwilling to uphold the regulation.

The prosecutor’s workplace assertion on December 22 stated that Bulgaria had no regulatory framework concerning cryptocurrency belongings and Nexo’s merchandise had been neither funding, nor monetary devices.

That is in stark distinction to the SEC’s place on Nexo;

“If you happen to’re providing or promoting merchandise that represent securities below well-established legal guidelines and authorized precedent, then it doesn’t matter what you name these merchandise, you’re topic to these legal guidelines and we count on compliance,” stated Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.

Providing unregistered securities in Bulgaria could be very a lot unlawful. Securities in Bulgaria are regulated by the Securities Market Supervision, which Nexo isn’t and has by no means been registered with.

Bulgaria’s investigation into Nexo began in late 2022. Authorities on the time had been investigating what they known as an “organized crime group”, suspected of “cash laundering, tax offenses, banking with out a license (and) laptop fraud”.

That is consistent with the SEC’s discovering within the US.

In January 2023, the identical month the SEC filed costs, Bulgarian authorities raided fifteen addresses in Bulgaria’s capital, Sofia.

Following the raids, Bulgarian authorities claimed

proof has been collected that an individual who used the platform and transferred cryptocurrencies has been formally declared a terrorist financing particular person.

Nexo was co-founded by Bulgarian nationals Antoni Trenchev and Kosta Kantchev.

BehindMLM’s curiosity in Nexo was piqued following a report from Novanite, which tied Trenchev and Kantchev to OneCoin.

In keeping with Novinite, prosecutors suspect that Bulgarians behind Nexo participated in a scheme orchestrated by Ruja Ignatova.

The suspicions are that the Bulgarians behind the massive firm acted in accordance with the scheme of Ruja Ignatova and the OneCoin pyramid led by her.

Upon studying they had been below investigation within the US, each Trenchev and Kantchev are reported to have fled to Dubai.

A go to to Nexo’s web site as we speak reveals the corporate continues to be pitching traders on annual returns of as much as 16%.

Nexo stays unregistered to supply securities with the SEC or Bulgaria’s Securities Market Supervision.

As of November 2023, SimilarWeb tracked ~2 million month-to-month visits to Nexo’s web site.

Nearly all of Nexo’s web site site visitors originated from Argentina (16%), Italy (13%), Spain (9%), France (6%) and the UK (5%).

Nexo isn’t registered to supply securities in any of those international locations.