Crypto lender Nexo reached resolution with US regulators, company ready to assist Bulgarian Parliament's ad hoc committee

Nexo Group has reached a resolution with US regulators, the company announced. In a statement on January 20, one of the co-founders, Antoni Trenchev, described the resolution as a comprehensive and final decision that puts an end to speculation about their relations with US institutions.

Nexo has sent a letter to the parliamentary ad hoc committee looking into the case, in which the company expresses its readiness to cooperate so that the whole truth comes out.

Nexo describes the resolution reached with US regulators as a landmark. They stress that the company is a leading global institution for digital assets and add that the settlement reached does not contain any allegations or accusations that Nexo was involved in fraud or misleading commercial practices. The problem was that they did not have the necessary registration to offer an interest bearing product. According to Nexo, this resolution terminates all checks into their activities in the United States.

“We are content with this unified resolution which unequivocally puts an end to all speculations around Nexo’s relations to the United States. Unfortunately, even Bulgarian state authorities and institutions were not ashamed to and continue to abuse the U.S. name and the reactions in connection with their outrageous actions in creating an alibi are yet to come, Antoni Trenchev, Co-founder of Nexo commented.

“We are confident that a clearer regulatory landscape will emerge soon, and companies like Nexo will be able to increasingly offer value-creating products in the United States in a compliant manner, and the U.S. will further solidify its position as the world’s engine of innovation,” Kosta Kantchev, Co-founder of Nexo, added.

The United States Securities and Exchange Commission issued a statement saying that to avoid an investigation by the authorities, the Bulgarian-founded company will pay a $22.5 million penalty and an additional equal amount in fines. They also published a detailed text of the resolution, which makes clear that on December 5, 2022, Nexo has discontinued offering one of its products in certain states and is phasing out all of its products and services in the US. They are also expected to exit the United States entirely shortly after April 1. In a tweet, New York's Attorney General announced that they are banning the company from operating in the state for five years. The spokesperson of Bulgaria’s Prosecutor General, Siyka Mileva, congratulated US regulators on the success achieved in their inquiry into Nexo group.

"The work on the pre-trial proceedings continues, and I want to stress that it is in close cooperation with our foreign partners. We have received numerous complaints from British citizens alleging that they were victims of fraud by Nexo. In conclusion, I would like to congratulate, on behalf of the Public Prosecutor's Office of the Republic of Bulgaria, the US regulatory authorities for the success achieved in the inquiry into the activities of Nexo, the owners of which are Bulgarian citizens," said Siyka Mileva.

Later on Facebook, Antoni Trenchev wrote that there is one complaint in the UK, which is of a private-legal nature and is to be heard by a court in London. Nexo also circulated a letter they had sent to the ad hoc parliamentary committee looking into the case. In it, they inform the Bulgarian MPs of the resolution reached with regulators in the United States and stress that they believe that the resolution casts a serious shadow of doubt over both the accusations made by the Bulgarian Prosecutor's office and the frivolous involvement of foreign law enforcement authorities in this case. The company also stated that it was ready to cooperate with the Bulgarian Parliaments’ ad hoc committee to clarify the whole truth.