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Investigation on Nexo Ended in Bulgaria Due to Lack of Evidence

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Investigation on Nexo Ended in Bulgaria Due to Lack of Evidence
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On December 22, the Bulgarian Prosecutor’s Office informed that it had wrapped up the investigation related to Nexo, a cryptocurrency firm, as it found no supporting evidence regarding money laundering and other criminal activities. 

The authorities charged four suspects who were running a crypto crime organization in Bulgaria, the UK, Switzerland, and the Cayman Islands. 

As per the official statement, Bulgaria has no regulatory framework for crypto, and Nexo’s services were neither investment nor financial instruments.  

Authorities searched Nexo’s Bulgarian headquarters on January 12 for suspected money laundering and tax evasion, which Trenchev branded “absurd” at the time.

Two months later, a Nexo user from California sued the company, alleging that Nexo duped the user into taking out loans against digital assets. Earlier this year, several US federal and state regulatory bodies accused and penalized Nexo for breaking securities laws. Still, Nexo was found not guilty of any fraud or deceptive business practices.

Since then, the company has stopped offering services in the US due to unclear and demanding legal requirements.

Although Bulgaria has not gotten any special crypto licenses or regulations, working without proper authorization is prohibited under the MAMLA.

Crypto Firms Facing Legal Actions

Gemini, a cryptocurrency exchange, was accused by New York Attorney General Letitia James of misleading clients about the dangers of an investment account it provided that paid high-interest rates on cryptocurrency.

The plan also included Genesis, a cryptocurrency lender, and Digital Currency Group, the company’s parent organization.

Last November, it was stopped, preventing customers from accessing their money.

That occurred soon after the multimillionaire trader Sam Bankman-Fried’s cryptocurrency exchange, FTX, crashed. 

The jury debated for hours before finding Sam guilty of seven fraud and conspiracy charges. Even with the conviction, the FTX participants’ legal issues are far from resolved.   

Major Troubled Personalities Due to FTX Debacle

Several A-list celebrities enlisted to promote FTX on social media, organize events, and feature in advertisements helped Bankman-Fried build his hollow empire. 

Among them were comic Larry David, tennis player Naomi Osaka, NBA icon Steph Curry, Tom Brady and his ex-wife Gisele. A class action lawsuit against these stars is currently proceeding in Texas. 

Crypto Market Overview 

In the past few months, the crypto market, excluding a few crypto tokens, performed well. Notably, bitcoin crossed the much-awaited milestone of $44k, and when writing, it was trading at $43,615.

Bitcoin price grew by 64.49% in the past three months, and in the year-to-date time frame, it surged by 164.46%.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

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