Troubled cryptocurrency firm Nexo plans to sue the Bulgarian government following a massive raid on the company's offices in Sofia.
Nexo filed a complaint against law enforcement authorities in response to an investigation into the company, Bulgarian News Agency reported on Jan. 13. The company is reportedly preparing to file a lawsuit against the authorities for damages caused by the sudden interruption by the police. Investigators did not serve a search warrant for hours, and inspectors never identified themselves, according to a report.
Nexo argued that yesterday's raid on its offices was illegal and showed "the utter incompetence of those who perpetrated such a disgraceful act." Its purpose was to "destroy and plunder a thriving business."
The company also stressed that Nexo does not provide any services to Bulgarian residents due to potential issues with the local government. The firm also reiterated that it has been complying with anti-money laundering requirements and sanctions against Russia, in addition to working with major crypto intelligence firms such as Chainalysis.
Expressing confidence that it will win the lawsuit, which will provide Nexo with damages from the investigation, the company said: “After Nexo filed and won its claim, Bulgaria will pay another record hundreds of millions of dollars in damages, but unfortunately , they will be at the expense of the Bulgarian taxpayers.”
The investigation into Nexo involved more than 300 police, prosecutors and state security personnel, said Siyka Mileva, a spokeswoman for Bulgaria's chief prosecutor. She also noted that the investigation is currently limited to Bulgaria, where police had searched 15 addresses linked to Nexo as of Jan. 12. Other reports suggest that some foreign agencies are also involved in the investigation.
The statement comes shortly after Nexo reportedly experienced a massive outflow of funds amid reports of the investigation. According to crypto analytics platform Arkham Intelligence, Nexo has seen “substantial outflows” since the news broke. Blockchain tracker Cielo Finance also reported massive Nexo withdrawals, highlighting transactions of more than $200,000 in tokens from the central bank of the United states Leaving the platform on January 12.
