By Mark Hunter
17 hours agoThu Jan 25 2024 09:55:22
Reading Time: 2 minutes
- Cryptocurrency lender Nexo has filed a $3 billion damages claim against Bulgarian authorities after a January 2023 raid on its Sofia offices
- The raid targeted an alleged large-scale financial criminal scheme, focusing on money laundering and violating international sanctions against Russia.
- No charges resulted and Nexo contends it suffered brand and reputation damage, losing business opportunities, including a potential US IPO.
Cryptocurrency lender Nexo is seeking $3 billion in damages from Bulgarian authorities following a January 2023 raid on its Sofia offices. The raid took place on January 13 that year and involved prosecutors, investigators, and foreign agents who targeted an alleged large-scale financial criminal scheme, with a focus on money laundering and violations of international sanctions against Russia. No charges resulted from the raid, which Nexo says damaged its brand and reputation and led it to lose business opportunities, including a potential IPO in the US.
Raid Targeted Large Scale Financial Crime
In the wake of the raid last year, Nexo co-founder Antoni Trenchev hinted that the company was considering suing the Bulgarian authorities for $1 billion and criticized the government’s “kick first, ask questions later approach.” This was thought to be a fanciful amount at the time, but clearly Nexo feels that more damage was done than initially thought.
Trenchev also called the actions of the Bulgarian authorities “absurd, unnecessary, and a large part…illegal” at the time before adding that some Nexo staff were briefly detained after the raid.
Mahmoud Mohammed, who is on the prohibited list of wanted persons of the Israeli services and was seemingly a big player in the alleged criminal ring, was also said to be “not a client of Nexo” and someone Trenchev did not know.
Nexo Counts the Cost
Nexo has taken its time to put its claim together, which accuses the country of wrongful and politically motivated actions, damaging its brand and reputation. The claim has been submitted to the World Bank’s ICSID in Washington, DC, and refers mainly to the business that Nexo believes it lost as a result of the pad press.
