Cryptocurrency

World

Impact

Billion

Nexo

<a href="https://bitcoinworld.co.in/cryptocurrency-lender-nexo-takes-3-billion-arbitration-claim-against-bulgaria/" title="Cryptocurrency Lender Nexo Takes $3 Billion Arbitration Claim Against Bulgaria" rel="noopener noreferrer nofollow"></a>
<ul>
 <li style="font-weight: 400">Cryptocurrency lender Nexo is seeking $3 billion in damages through arbitration against Bulgaria, alleging wrongful investigations and subsequent charges were politically motivated.</li>
 <li style="font-weight: 400">Bulgarian prosecutors dropped their case against Nexo in December 2023, citing a lack of evidence for alleged money laundering offenses.</li>
 <li style="font-weight: 400">Nexo claims the investigations damaged its reputation, leading to missed business opportunities, including an IPO and a partnership with a major European football club.</li>
</ul>
The cryptocurrency lending platform Nexo has taken legal action against the Republic of Bulgaria, seeking $3 billion in damages.&nbsp;
This move comes after Nexo accused Bulgaria of engaging in wrongful and politically motivated actions and unjustified criminal investigations.&nbsp;
The allegations stem from events that unfolded over the past year, including investigations into money laundering and a subsequent dropping of charges by Bulgarian prosecutors.
See Also: <a class="row-title" href="https://bitcoinworld.co.in/finra-analysis-70-of-crypto-communications-potentially-are-misleading/" aria-label="“FINRA Analysis: 70% Of Crypto Communications Potentially Are Misleading” (Edit)" rel="noopener noreferrer nofollow">FINRA Analysis: 70% Of Crypto Communications Potentially Are Misleading</a>
<h3 id="span-style-font-weight-400-investigations-and-charges-dropped-span">Investigations And Charges Dropped</h3>
In December 2023, the Bulgarian Prosecutor’s Office concluded its investigation into Nexo, stating that there was no evidence of criminal activity related to money laundering.&nbsp;
Initially, Bulgarian authorities had alleged that Nexo executives were involved in an organized criminal group from 2018 to 2023 aimed at profiting from crypto lending.&nbsp;
The charges were brought against four Bulgarian nationals, including Nexo co-founders Kosta Kanchev and Antoni Trenchev, Trayan Nikolov, and Kalin Metodiev, following a raid on Nexo’s offices at the beginning of 2023.&nbsp;
The charges dropped partially due to Bulgaria’s lack of a legal framework covering crypto assets.
Nexo, through its Swiss subsidiary Nexo AG, <a href="https://icsid.worldbank.org/cases/case-database/case-detail?CaseNo=ARB/24/2" rel="noopener noreferrer nofollow">submitted</a> a $3 billion arbitration claim to the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C., on January 18, 2024.&nbsp;
This institution specializes in resolving legal disputes between international investors and nation-states.
The cryptocurrency lending platform argues that the investigations and charges have harmed its brand and reputation, leading to the loss of significant business opportunities.&nbsp;
Nexo claims it was actively working with three U.S. banks on an initial public offering (IPO) with an initial valuation between $8 to $12 billion.&nbsp;
Additionally, the company asserts that it was on the brink of finalizing a multi-year deal with an undisclosed major European football club, which would have provided it exposure to over 330 million supporters worldwide.
See Also: <a class="row-title" href="https://bitcoinworld.co.in/coinbase-us-treasurys-proposed-rules-are-inefficient-and-burdensome/" aria-label="“Coinbase: US Treasury’s Proposed Rules Are Inefficient And Burdensome” (Edit)" rel="noopener noreferrer nofollow">Coinbase: US Treasury’s Proposed Rules Are Inefficient And Burdensome</a>
<h3 id="span-style-font-weight-400-impact-on-nexo-span">Impact On Nexo</h3>
Antoni Trenchev, one of Nexo’s co-founders, expressed that while the business continues to operate, it has been significantly affected by the investigation’s aftermath.&nbsp;
He stated, “Our growth path has been slowed down and opportunities lost or significantly delayed. I personally promised 10 months ago that we would explore all legal means available to secure financial compensation for Nexo.”
Furthermore, Nexo’s troubles in the United States were compounded when it agreed to a $45 million settlement with the US Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) following its failure to register the offer and sale of its Earn Interest Product.&nbsp;
This settlement resolved cases brought by various U.S. state securities regulators, leading to the discontinuation of the product in April.
In December 2023, Nexo also announced its decision to wind down operations in the U.S., citing “a lack of regulatory clarity” as the primary reason for its exit.
In response to Nexo’s arbitration claim, the Bulgarian finance ministry acknowledged receipt of the request for arbitration from the ICSID, indicating that it would be reviewed.
The post <a href="https://bitcoinworld.co.in/cryptocurrency-lender-nexo-takes-3-billion-arbitration-claim-against-bulgaria/" rel="noopener noreferrer nofollow">Cryptocurrency Lender Nexo Takes $3 Billion Arbitration Claim Against Bulgaria</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

Cryptocurrency Lender Nexo Takes $3 Billion Arbitration Claim Against Bulgaria

目录

ItsBitcoinWorld

发布于 2024年1月24日的其他文章

Justin Sun’s Latest Altcoin Moves: Strategic Implications for XVS

Alchemy Pay and BakerySwap Partner to Simplify Crypto Purchases with New On-Ramp Service

MONG Price Prediction: Will MONG Retest 50-Day EMA Amid Selloff?

Legendary Trader Peter Brandt Shares Epic Crypto Trading Tip

Is Ethereum ETF Launch Closer? Issuers Remain Confident of the Approval

Kucoin’s Crypto Card Integrates Apple Pay

订阅我们免费的电子期刊，获取每日最新加密领域动态！