Crypto Firm Nexo Demands $3 Billion Payment from Bulgaria Following Impact of Investigation
Switzerland-based crypto lender nexo AG, a Cayman Islands subsidiary of Nexo Capital, is seeking $3 billion in damages from Bulgaria over an abandoned criminal investigation. The company claims the investigation, which began in January 2023, damaged its reputation and shareholder value. Additionally, the organization claimed that the investigation disrupted plans for a US stock market debut and a football sponsorship deal.
Nexo Asked for 3 Billion Dollars in Compensation
Nexo AG recently submitted a document to the World Bank’s International Center for Settlement of Investment Disputes (ICSID). According to the latest legal filing, the agency said the investigation damaged its reputation and destroyed shareholder value.
The Bulgarian Ministry of Finance responded, accepting ICSID’s request for arbitration, stating, “This or any other communication shall in no way be deemed an admission of the merits of any claim or an admission of any jurisdiction to arbitrate.” The ministry stressed that further review would be carried out by an expert inter-ministerial committee before recommending next steps, Reuters reported. The prosecutor’s office, which is the defendant in the case, remained silent on the issue.
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About the Example Initiated by Bulgaria
In January 2023, Bulgarian prosecutors opened an investigation into Nexo AG, accusing its founders, including former Bulgarian MP Antoni Trenchev, of crimes such as participation in an organized crime group, money laundering, tax fraud and computer fraud. The case was dropped last month due to lack of evidence and the lack of a legal framework for crypto asset services in Bulgaria.
Nexo denied allegations of irregularities and claimed the investigation was politically influenced, local news agency BTA reported. Company Co-Founder Trenchev has consistently maintained a clear stance on their innocence. ICSID, an international arbitration institution, registered the case on January 18. However, details about the compensation sought have not yet been confirmed.
As arbitration proceedings progress, Nexo aims to address what it perceives as serious damage to its business and reputation as a result of the stalled investigation in Bulgaria. The $3 billion claim reflects the seriousness of the allegations against Nexo. In addition, it sets the stage for a complex legal battle between the cryptocurrency lender and Bulgarian authorities.
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