Nexo Seeks $3 Billion in Damages from Bulgarian Authorities

The crypto lending platform Nexo has approached the ICSID demanding $3 billion in compensation from Bulgarian authorities for damages incurred during a terminated investigation, according to Reuters.

The company claims that the case, closed in December due to lack of evidence, harmed its reputation, reduced shareholder value, disrupted plans for a US stock market listing, and derailed a sponsorship deal with an unnamed football club.

Bulgaria’s Ministry of Finance has confirmed receipt of the request from ICSID. An interdepartmental committee will review it and propose further actions.

In January 2023, law enforcement conducted searches at Nexo’s Bulgarian office. The investigation was prompted by allegations of money laundering, tax violations, fraud, and providing banking services without a license. Amid these events, Nexo experienced a significant outflow of client funds.

After the charges were dropped, Nexo co-founder Antoni Trenchev stated that the “attack was politically motivated.”

In the same month, Nexo agreed to pay $45 million in fines to US regulators to settle allegations of unregistered securities sales. The authorities deemed the firm’s Earn Interest Product as such.

Previously, the platform announced a “gradual withdrawal” from operations in the US due to regulatory pressure.

Back in March, a California resident filed a lawsuit against Nexo for damages caused by “fraudulent inducement” to take loans.