•A spokesman for the Bulgarian prosecutor general stated that the Nexo probe had no political undertones.
•Nexo released a statement claiming that it was associated with two political parties and that Bulgaria is the most corrupt country in the EU.
•The investigation into Nexo is related to AML and tax matters concerning a Bulgarian entity of the group that does not have customer-facing functions.
The Prosecutor General of Bulgaria has recently released a statement that the investigation into cryptocurrency lender Nexo has no political undertones. This announcement comes after Nexo released a statement claiming that the extensive measures taken against it, including a raid on its premises in Sofia, were politically motivated. This announcement has caused a stir in the cryptocurrency industry as many are wondering if this is a sign of a political crackdown on the industry.
The investigation into Nexo is related to AML and tax matters concerning a Bulgarian entity of the group that does not have customer-facing functions. This Bulgarian entity is responsible for payroll, customer support, and compliance. Nexo has also been associated with two political parties: We Continue the Change, a centrist anti-corruption political party that is presently the second-largest in Bulgaria’s parliament, and Democratic Bulgaria, a coalition of three political parties including Yes, Bulgaria!, Democrats for a Strong Bulgaria, and The Greens.
In response to the allegations of political motivation, Siika Mileva, a spokesman for the Prosecutor General of Bulgaria, stated that it is a “national sport” to attack institutions. He also said that Nexo is the only entity that has been investigated in this matter, and that the investigation is not politically motivated.
Nexo is a cryptocurrency lender that allows users to borrow money against their cryptocurrency holdings and earn interest. This announcement has provided assurance to many in the cryptocurrency community that the investigation into Nexo is not politically motivated and that they can continue to trust the company.
Overall, the Prosecutor General of Bulgaria has released a statement that the investigation into Nexo is not politically motivated and aims to ensure that the cryptocurrency industry is compliant with AML and tax regulations. This announcement provides assurance to many in the cryptocurrency community that the industry is not under threat of a political crackdown.