Nexo categorically rejects all accusations
Nexo categorically rejects all allegations made by the Prosecutor’s office. In a statement to the media, on January 13, 2023, the company claims that the platform has not been used for money laundering and financing of illegal activities, including terrorism, as well as for circumventing sanctions. No financial and tax crimes have been committed and this will be proven in accordance with the statutory procedure before the Bulgarian courts. They believe that the Prosecutor’s office and the participants in the investigation do not know the area in which the company operates and its inherent specifics.
Nexo claims that the actions of the Prosecutor’s office are politically motivated.
Four charged in the case against crypto lender Nexo, witnesses seek protection
Nexo says they are among the crypto companies with the highest standards in terms of know-your-customer and anti-money laundering measures. Nexo uses the services of companies such as Chainalysis, which are used by the FBI and the CIA, among others. This allows our specialists, who have special qualifications in the USA in connection with the fight against money laundering and terrorist financing, to indisputably establish the origin of crypto assets entering the platform and the destination of funds withdrawn from the platform, the statement reads.
Nexo says the company holds over 50 licenses and registrations in various jurisdictions globally.
Nexo intends to file claims for all financial and non-pecuniary damages suffered as a result of illegal actions
Nexo will pursue claims for all pecuniary and non-pecuniary damages suffered as a result of unlawful actions and for this purpose it has engaged U.S. consultants specializing in the field of claim analysis. According to initial calculations, the claims will cost hundreds of millions of dollars.
This is the full text of Nexo’s position:
On the accusations made by the Bulgarian Prosecutor's Office on Jan 13, 2023
Nexo categorically and unequivocally rejects all accusations made by the Bulgarian Prosecutor's Office at the press conference on January, 13. No conspiratorial acts, including the alleged acts, were committed. Nexo's platform has not been used for money laundering and financing of illegal activities, including terrorism, as well as for circumventing sanctions. No financial and tax crimes have been committed, and this will be proven following the statutory procedure before the Bulgarian courts.
As can be seen from the statement of the Prosecutor's Office, the participants in the investigation are not familiar with the field in which our company operates and its inherent specifics.
Nexo believes that the actions of the Prosecutor's Office are politically motivated, as is clear from the 7,000 publications in the tabloid media and the attempts to insinuate a connection between the political parties "We Continue the Change" and "Democratic Bulgaria" and Nexo.
Guided by an active civic stance, members of the Nexo team have donated to political parties; this was done in a transparent manner, and in accordance with the law on political parties.
Prosecutors continue to fail to establish neither an international element to the raid against Nexo, nor any connection to the several randomly listed jurisdictions in which Nexo has registered legal entities. The citation of a standard text by a foreign security service is probably related to a request for information from the Bulgarian side.
Nexo's management is in daily contact with several regulators around the world and it is clear from the nature of the conversations that there is no international coordination. Nexo is among the crypto companies with the highest standards in terms of know-your-customer as well as anti-money laundering and anti-terrorist financing measures. Beyond the standard methods of any financial institution, Nexo uses the services of companies such as Chainalysis, which are used by the FBI and the CIA, among others. This allows our specialists, who have special qualifications in the USA in connection with the fight against money laundering and terrorist financing, to indisputably establish the origin of crypto assets entering the platform and the destination of funds withdrawn from the platform.
All suspicious cases are promptly reported to the relevant authorities in the jurisdictions of competence.
After the outbreak of the war in Ukraine and the subsequent sanctions, Nexo undertook one of the strictest policies regarding sanctioned territories and individuals as a result of Russian aggression. What's more, we were among the first to help raise funds for the victims.
It is abundantly clear this is not to the liking of many pro-Russian circles in Bulgaria.
Nexo is a leading institution in the field of financial services for digital assets and provides its services to millions of satisfied customers. It has over 50 licenses and registrations in various jurisdictions worldwide, which is a testament to the high standards the company meets. The company engages the best global law firms to build its business models according to the requirements of the dynamic regulatory framework in the jurisdictions in which it operates.
A company from the Nexo group, registered in Bulgaria and providing outsourcing services, is a proud employer of over 600 people in the country and is an exemplary employer that has paid tens of millions in the form of taxes and insurance for its staff.
Nexo intends to file claims for all financial and non-pecuniary damages suffered as a result of illegal actions. For this purpose, it has engaged U.S. consultants specializing in the field of claim analysis. According to initial calculations, the claims will cost hundreds of millions of dollars.
When it comes to the comments in the media, social networks, and the general public space, we would like to emphasize the fact that the field in which we operate requires high levels of specialized knowledge and any talk on the subject without the necessary expertise creates prerequisites for manipulations and generates fake news that is not in the interest of our society and the business operating in it.
Sincerely,
Nexo’s Management Team
