1 year ago
Sofia City Prosecutor’s Office has concluded a high-profile probe into the activities of 4 individuals linked to the Nexo online platform.
The investigation, initiated connected September 29, 2022, focused connected allegations of information successful an organized transgression radical and unauthorized banking activities done Nexo. Four individuals were accused of operating an organized transgression radical from 2018 to January 2023 nether Art. 321 of the Criminal Code.
Additionally, 2 of the individuals faced charges for conducting unlicensed banking transactions from June 2018 to January 2023, which progressive lending and deposit raising successful assorted currencies connected the Nexo level without due authorization nether the Law connected Credit Institutions (CLI).
The probe entailed extended procedural and investigative actions, including witnesser interviews with a concealed identity, method and banking expertise, and investigation of outgo relationship movements. International practice was besides evident, with European Investigation Orders and their consequent responses playing a important role.
The technicality defense
Despite an elaborate probe and planetary scrutiny, including administrative actions against Nexo successful assorted US states, the supervising prosecutors concluded that the grounds did not substantiate the charges. No impervious of a transgression association, banking enactment without a permit, wealth laundering, taxation crimes, oregon machine fraud was recovered against the defendants.
A cardinal facet of the investigation’s decision was the ineligible presumption of virtual currencies successful Bulgaria and the EU. As per the European Banking Authority’s study and the existent ineligible framework, crypto-assets are not recognized arsenic ineligible means of outgo oregon regulated fiscal instruments successful Bulgaria and the EU. This deficiency of regularisation was pivotal successful determining that Nexo’s activities, which were chiefly conducted online and apt managed extracurricular Bulgaria, did not represent fiscal crimes.
The settlement betwixt Nexo and assorted US regulatory authorities further substantiated the lack of fraud oregon misleading practices successful Nexo’s operations. This broad investigation led to the termination of transgression proceedings, with the supervising prosecutors concluding that nary transgression had been committed nether the existent ineligible authorities for crypto assets and fiscal services.
The station Bulgarian authorities driblet wealth laundering probe into Nexo executives appeared archetypal connected CryptoSlate.
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