Nexo sues Bulgaria for $3 billion in damages after the end of an investigation


According to Nexo, the company’s image took a hit and stockholders saw a big loss in value since the criminal investigation was abandoned.

After unsuccessful criminal investigations, cryptocurrency lending platform Nexo is suing the Bulgarian government for $3 billion in damages.

In a January 24th conversation with Cointelegraph, Nexo detailed their $3 billion arbitration lawsuit against the Republic of Bulgaria. It has submitted a claim via the World Bank-run International Centre for Settlement of Investment Disputes (ICSID), which is based in Washington, D.C.

According to earlier reports from Cointelegraph, Bulgarian prosecutors dismissed the case against Nexo in December 2023. They had concluded that the four Bulgarian citizens who had been prosecuted during an early 2023 raid on Nexo’s headquarters had not committed any crimes.

From 2018 to 2023, prosecutors said Nexo officials were part of a criminal organization that targeted crypto loans for profit. Initially, after the searches in January 2023, Bulgarian citizens and co-founders of Nexo Kosta Kanchev, Antoni Trenchev, Trayan Nikolov, and Kalin Metodiev were prosecuted.

The prosecution dropped the accusations in part because Bulgaria does not have a legal framework in place to deal with cryptocurrency.

Nexo AG, a Swiss subsidiary of Nexo, submitted legal papers to the ICSID on January 18th. The organization handles disputes between foreign investors and governments.

According to Nexo, three American banks were collaborating on an IPO on a major stock market, with an initial value of $8–$12 billion. Additionally, Nexo would have gained exposure to over 330 million supporters globally had it signed a multi-year partnership with a prominent, undisclosed European football team, according to the business.

Trenchev said in a statement that Nexo had suffered because of the abandoned inquiry, even if the company could keep running.

“We have lost or severely postponed chances, and our development path has slowed considerably.” In a statement made ten months ago, Trenchev made an assurance that they would pursue all legal avenues in order to get just recompense for Nexo.

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