In January 2023, the Bulgarian government opened an investigation into the crypto bank Nexo, which allegedly assisted Hamas terrorists in money laundering. But the government stopped this at the end of this year. Nexo is reportedly seeking damages for missing many opportunities.
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Government and Regulation
Crypto company is suspected of money laundering
The Bulgarian government accused Nexo in early 2023 of helping an individual linked to the terrorist organization Hamas transfer USDT to Binance in November 2019 and February 2021. Nexo itself tried to debunk this and even provided extensive evidence. At the end of 2023, the Bulgarian Ministry of Finance withdrew the accusation due to lack of evidence.
Unfortunately, this was not the only conflict between Nexo and a government. In early 2023, Nexo paid a $45 million fine to the US Securities and Exchange Commission (SEC) for allegedly violating securities laws (like many other US crypto companies).
Nexo wants $3 billion from the Bulgarian government
But if Nexo has its way, the dispute with the Bulgarian ministry has not yet been resolved. This is written by Reuters, which had access to certain legal documents. The company's Swiss branch, Nexo AG, claims to have lost a sponsorship contract as a result of the allegations. His plans for an IPO in the USA also failed.
In addition, the company suffered major reputational damage and shareholders suffered from the misunderstanding. Therefore, the company is demanding $3 billion in compensation from the Bulgarian governmentRness.
According to the business newspaper, the documents were submitted to the World Bank's International Center for Settlement of Investment Disputes (ICSID). After all, the complaint is a government action.
This is nothing special for a financial company; the institution was founded specifically to resolve these types of conflicts. The special thing is that Nexo is a crypto company. It is the first time that such a company has contacted this organization.
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