Bulgarian Authorities Conclude Nexo Money Laundering Investigation without Charges

By: Eva Baxter

The Bulgarian Prosecutor's Office has terminated its investigation into four individuals affiliated with the online platform, Nexo, due to lack of evidence. The investigation, that started on September 29, 2022, addressed accusations of participation in an organized criminal group, unauthorized banking activity, and money laundering. The allegations involved unlicensed banking transactions conducted from June 2018 to January 2023 on the Nexo platform.

Despite detailed investigation and international scrutiny that included administrative actions against Nexo in various U.S. states, the evidence did not substantiate the accusations. The prosecutors' office reported that it found "no evidence of criminal activity," noting that "no evidence of tax offenses or computer fraud was found against the defendants."

A significant factor in the termination of the investigation was the current legal status of virtual currencies in Bulgaria and the EU. Cryptocurrencies are not officially acknowledged in the existing legal framework as a payment method or regulated financial instruments. This shortcoming played a decisive role in determining that Nexo’s activities did not constitute financial crimes.

The prosecutors' decision is backed by the settlement reached between Nexo and various U.S. regulatory authorities, further demonstrating that there was no fraudulent or misleading practice involved in Nexo's operations.