Bulgarian Authorities Demand $3B from Nexo

The crypto lending platform Nexo is seeking $3 billion in compensation from Bulgarian authorities for the losses it incurred during an investigation that was ultimately discontinued.

According to Reuters, Nexo has filed an appeal with ICSID, claiming that the investigation, which ended in December due to a lack of evidence, harmed its reputation, decreased shareholder value, disrupted plans to list on the US stock market, and caused the collapse of a sponsorship deal with a football club that has not been named.

The Bulgarian Ministry of Finance has confirmed receiving the request from ICSID and stated that it will be reviewed by an interdepartmental committee, which will then recommend further steps.

In January 2023, Bulgarian law enforcement authorities searched the office of Nexo in relation to allegations of money laundering, tax violations, fraud, and providing banking services without a license.

As a result, there was a significant withdrawal of funds from Nexo by its clients.