The Bulgarian Prosecutor’s Office has closed an investigation into the cryptocurrency firm Nexo due to insufficient evidence. Initially, Nexo faced serious allegations of money laundering, tax evasion, unlicensed banking, and fraud. The inquiry, which began in January of this year, also targeted four company executives: Kosta Kanchev, Antoni Trenchev, Kalin Metodiev, and Trayan Nikolov. However, authorities found no proof of criminal activity or tax fraud against the accused.
Prosecutors concluded that Nexo’s products did not function as financial instruments, clearing the firm of potential regulatory breaches. This development comes as a relief for Nexo, especially after its proprietary altcoin, NEXO, experienced pressure following the investigation. The scrutiny of Nexo was particularly noteworthy in the crypto community, given the backdrop of the collapse of other crypto firms after the bankruptcy of the prominent exchange FTX in the latter half of 2022.
Following the dismissal of the case, Nexo’s co-founder Antoni Trenchev communicated to Coindesk via email, expressing his belief that the dropped charges confirm the political nature of the attacks against Nexo and its management. Trenchev argued that the case should never have been opened in the first place.
He further stated that the closure of the investigation is not only a vindication for Nexo’s executives but also serves as evidence of the legitimacy of all good actors in the cryptocurrency space. The exoneration is seen as a significant step in clearing their names and reinforcing the integrity of compliant players in the industry.