The Sofia City Prosecutor’s Office determined that the actions of four individuals related to the Nexo online platform were legal and decided not to pursue major charges against them.
The Sofia City Prosecutor’s Office has concluded a major investigation into the activities of four individuals related to the Nexo online platform.
The investigation, launched on September 29, 2022, focuses on allegations of involvement in organized crime groups and unauthorized banking operations on the Nexo platform. Under Article 321 of the Criminal Code, the four individuals were charged with organizing the activities of a criminal group from 2018 to January 2023.
In addition, two of the individuals also face charges for conducting unlicensed banking transactions between June 2018 and January 2023, which involved the conduct of loans and deposit raisings in various currencies on the Nexo platform without complying with the Appropriate authorization is obtained under the Credit Institutions Act.
The investigation included extensive procedural and investigative operations, including witness examinations of secret ID holders, technical and banking expertise and analysis of payment account liquidity. International cooperation was also on display, with the European Investigation Order and its subsequent response playing an important role.
technical defense
Despite an exhaustive investigation and international review, including administrative actions against Nexo in various U.S. states, oversight prosecutors concluded that the evidence did not support the charges. No evidence of criminal organization, unlicensed banking, money laundering, tax crimes or computer fraud was found against the defendants.
A key aspect of the investigation’s conclusions is the legal status of virtual currencies in Bulgaria and the EU. According to the European Banking Authority report and the current legal framework, crypto-assets are not recognized as legal means of payment or regulated financial instruments and there are no regulations in Bulgaria and the EU. This lack of regulation is a key factor in determining whether Nexo’s activities, which were primarily conducted online and were likely managed outside Bulgaria, amounted to financial crime.
Nexo’s settlement with various U.S. regulatory agencies further confirms that there was no fraud or misleading behavior in Nexo’s operations. This comprehensive analysis led to the termination of the criminal proceedings, with the supervising prosecutor concluding that no crime had been committed under the current legal regime for crypto assets and financial services. #保加利亚 #Nexo
