According to a report by Reuters, a legal document shows that the cryptocurrency lending platform Nexo is seeking a $3 billion compensation from Bulgarian authorities for a terminated criminal investigation. The company claims that its plans for a U.S. listing and a football sponsorship deal fell through due to this investigation.
According to a previous report by Zombit, Bulgarian prosecutors launched an investigation into Nexo in January 2023 for alleged money laundering and tax crimes, searching 15 addresses related to Nexo. However, the prosecutors dropped the case last month, stating that there was no evidence of criminal activity. Prosecutors mentioned that Bulgaria lacks a legal framework for cryptocurrency services.
A document submitted to the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank shows that Nexo’s subsidiary Nexo AG in Switzerland claims that this investigation has damaged its reputation and shareholder value.
Reportedly, the Bulgarian Ministry of Finance has received an arbitration request from ICSID, which will be reviewed by a specialized interdepartmental committee for further action. The Bulgarian Prosecutor’s Office is also one of the defendants in this case, but has not responded to requests for comments.