• Bulgarian offices of crypto lender Nexo were raided on Jan 12, 2023, resulting in a surge of Bitcoin withdrawals from the platform.
• Nexo held 133,263 bitcoin on Jan 12, 2023, and 124,939 bitcoin on Jan 13, 2023, amounting to $157.21 million worth of bitcoin withdrawn in 24 hours.
• Nexo has denied any wrongdoing and has stated that it adheres to anti-money laundering and know-your-customer policies.
On Jan 12, 2023, the offices of crypto lender Nexo in Bulgaria were raided by 300 investigators from various agencies. This resulted in a surge of Bitcoin withdrawals from the platform, with $157.21 million worth of bitcoin having been withdrawn during the past 24 hours.
According to Nexo’s real-time attestation website, the company held around 134,203 bitcoin on Jan 3, 2023, with a total value of $2.5 billion using current BTC exchange rates. However, on Jan 12, 2023, the number of held bitcoins had decreased to 133,263. By Jan 13, 2023, the crypto lender’s BTC stash had decreased further to 124,939 BTC.
The investigation by the Bulgarian attorney general is accusing Nexo of violating tax requirements, participating in money laundering, and bypassing financial sanctions associated with the Russian Federation. In response, Nexo immediately issued a statement on Twitter to the community that the company adheres to „very stringent anti-money laundering and know-your-customer policies.“
Nexo has been in the crypto lending business since 2018 and has become one of the most popular and reliable options in the space. It offers a wide range of services, such as crypto-backed loans, staking, and savings accounts. However, the company’s recent legal troubles may have tarnished its reputation, as evidenced by the significant amount of withdrawals from the platform.
At the time of writing, it remains unclear if and how the Bulgarian investigation into Nexo will affect the company’s operations. For now, Nexo has denied any wrongdoing and stated that it is committed to adhering to anti-money laundering and know-your-customer policies.