Nexo Co-Founder Considers Suing Bulgaria for $1 Billion

Nexo co-founder Antoni Trenchev said his company may sue the Bulgarian government for $1 billion following a raid on Nexo’s offices earlier this month. 

Trenchev claimed that the state’s actions were not only illegal, but caused significant harm to his company’s reputation. 

Repairing a Damaged Reputation

During an interview with Nova TV, Trenchev called claims that his company is involved in money laundering and terrorist financing operations ”absurd.” 

“We, as an institution, monitor all incoming and outgoing transactions on our platform in real-time,” he explained. Nexo put out a similar statement on the situation weeks ago, claiming to possess over 30 AML compliance officers monitoring OFAC sanctions lists

Such claims were grounds for the government’s raid on Nexo’s offices on January 12. News of the raid was shortly followed by an influx of withdrawal requests from its platform, during a period marred by widespread turbulence and uncertainty for the crypto lending industry in general. 

“Our consultants estimate the damages at over 1 billion dollars,” said Trenchev. “We were in the process of listing on the American stock exchange and now it has to be postponed because of the reputational damage that was done to us.”

Specifically, Bulgaria accused Nexo of having served multiple wanted criminals. Transactions surrounding one of them – Mahmoud Mohammed – with which the prosecutors’ office took concern were made two years before Mohammed was on the Israeli services’ list., according to Trenchev. 

Political Corruption

Ultimately, the co-founder believes that Nexo’s debacle with the prosecutors’ office  is politically motivated. The latter’s raid on Nexo’s office took place just one day before President Rumen Radev was to give his final mandate forming an acting government. 

While some expected that mandate to go to Democratic Bulgaria (DB), it ultimately went to the Bulgarian Socialist Party (BSP). The former party was known for having received donations from over 12 Nexo members. 

“It was an opportune moment to resoundingly attack parties like PP and DB and to sabotage the third mandate,” said Trenchev about the prosecutors’ move.

Nexo itself also implied that its entanglement with the law had corruption at its core, shortly after the raid. “Some regulators have recently adopted the kick first, ask questions later approach,” stated Nexo. “In corrupt countries, it is bordering with racketeering, but that too shall pass.”

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Nexo plans sue the prosecutors’ office for its actions. 

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