Sofia Metropolis Prosecutor’s Workplace has concluded a high-profile investigation into the actions of 4 people linked to the Nexo on-line platform.
The investigation, initiated on September 29, 2022, targeted on allegations of participation in an organized felony group and unauthorized banking actions by Nexo. 4 people had been accused of working an organized felony group from 2018 to January 2023 underneath Artwork. 321 of the Legal Code.
Moreover, two of the people confronted costs for conducting unlicensed banking transactions from June 2018 to January 2023, which concerned lending and deposit elevating in varied currencies on the Nexo platform with out acceptable authorization underneath the Legislation on Credit score Establishments (CLI).
The investigation entailed intensive procedural and investigative actions, together with witness interviews with a secret identification, technical and banking experience, and evaluation of cost account actions. Worldwide cooperation was additionally evident, with European Investigation Orders and their subsequent responses taking part in a vital function.
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Regardless of an elaborate investigation and worldwide scrutiny, together with administrative actions towards Nexo in varied US states, the supervising prosecutors concluded that the proof didn’t substantiate the fees. No proof of a felony affiliation, banking exercise and not using a allow, cash laundering, tax crimes, or pc fraud was discovered towards the defendants.
A key facet of the investigation’s conclusion was the authorized standing of digital currencies in Bulgaria and the EU. As per the European Banking Authority’s report and the present authorized framework, crypto-assets are usually not acknowledged as authorized technique of cost or regulated monetary devices in Bulgaria and the EU. This lack of regulation was pivotal in figuring out that Nexo’s actions, which had been primarily carried out on-line and certain managed exterior Bulgaria, didn’t represent monetary crimes.
The settlement between Nexo and varied US regulatory authorities additional substantiated the absence of fraud or deceptive practices in Nexo’s operations. This complete evaluation led to the termination of felony proceedings, with the supervising prosecutors concluding that no crime had been dedicated underneath the present authorized regime for crypto belongings and monetary companies.