According to Reuters, a legal document has revealed that cryptocurrency lending platform Nexo is seeking $3 billion in compensation from Bulgarian authorities for a terminated criminal investigation. The company claims that its plans for a US listing and a football sponsorship deal fell through due to this investigation.
According to a previous report by Zombit, Bulgarian prosecutors launched an investigation into Nexo in January 2023 on suspicion of money laundering and tax crimes, conducting searches at 15 addresses related to Nexo. However, the case was dropped last month, with prosecutors stating that there was no evidence of criminal activity. The prosecutor’s office also stated that Bulgaria lacks a legal framework for cryptocurrency services.
A document submitted to the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank shows that Nexo’s subsidiary, Nexo AG, based in Switzerland, claims that this investigation has harmed its reputation and undermined shareholder value.
Reportedly, the Bulgarian Ministry of Finance has stated that it has received an arbitration request from the ICSID, which will be reviewed by a specialized interdepartmental committee for further action. The Bulgarian prosecutor’s office is also one of the defendants in this case but has not responded to requests for comment.
