Bulgarian Prosecutors Drop Charges Against Crypto Lender Nexo — ‘No Evidence of Criminal Activity’

The prosecutor’s bureau for Sofia, the superior metropolis of Bulgaria, has dropped transgression proceedings against crypto lender Nexo. “The squad of supervising prosecutors came to the decision that determination was nary grounds of committed crimes,” the authorities stated, adding that crypto assets are presently not fiscal instruments and their trading is not taxable to regularisation successful the country.

Crypto Trading Not Subject to Regulation successful Bulgaria

The Prosecutor’s Office of the Republic of Bulgaria announced Friday that the Sofia City Prosecutor’s Office has terminated transgression proceedings against Nexo. Pre-trial proceedings against the crypto lender commenced connected Sept. 29 past year, with instrumentality enforcement officials reportedly probing the institution for alleged wealth laundering and sanctions violations.

“There is nary grounds of transgression activity” regarding the carrying retired of banking enactment without a corresponding permit, the announcement details, arsenic translated by Google. “Also, nary grounds of wealth laundering was collected against the defendants, and nary grounds of taxation crimes oregon machine fraud was collected.” The prosecutor’s bureau stated:

On the ground of the established factual situation, the squad of supervising prosecutors came to the decision that determination was nary grounds of committed crimes.

The lawsuit lists K. Kanchev, A. Trenchev, K. Metodiev, and T. Nikolov arsenic defendants, alleging that they were progressive successful an organized transgression radical formed for nett betwixt 2018 and January 2023. Kanchev and Trenchev besides faced charges of conducting banking transactions without due authorization. The transactions progressive lending and deposit activities successful U.S. dollars, British pounds, and euros done the Nexo online platform.

The probe included witnesser interviews, analyses of outgo relationship movements, analyzable forensic and valuation reports, and assorted investigative actions specified arsenic searches and seizures. Despite support to walk $500,000 connected an expert, supervising prosecutors considered it unnecessary.

The regulatory presumption of cryptocurrencies successful Bulgaria besides importantly influenced the prosecutors’ decision. Noting that Bulgaria lacks a circumstantial ineligible model for services involving crypto assets, the prosecutor’s bureau stated that activities conducted by Nexo are not regulated, and determination is nary request for permits, registration, oregon licensing.

“It tin beryllium concluded that the products offered by Nexo are not fiscal instruments. The proviso of services to clients successful narration to these products does not autumn wrong the scope of concern services,” the prosecutor’s bureau detailed, elaborating:

Given that crypto assets are not presently fiscal instruments, their trading is besides not taxable to regulation.

Virtual currency is not recognized arsenic a ineligible means of outgo successful Bulgaria, and its activities are not classified nether Article 4 of the Law connected Payment Services and Payment Systems, the prosecutor’s bureau clarified, noting: “The supervising prosecutors came to the decision that nary transgression had been committed and terminated the transgression proceedings.”

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