Crypto lender Nexo shuts down 2 UK-based subsidiaries

London-based crypto lender Nexo (NEXO) has unopen down 2 of its subsidiaries located successful the U.K. connected May 11, Bloomberg News reported.

The lender is besides going nether an probe successful Bulgaria for allegedly being progressive successful an organized transgression scheme, the Bloomberg article noted.

Branches unopen down

The lender applied to the U.K. authorities to unopen down Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd.

Nexo’s Co-founder Antoni Trenchev claimed that the branches were closed disconnected owed to company-wide “restructuring.”

According to Trenchev, Nexo is “rethinking the way” it goes astir “servicing clients” but is not considering exiting the U.K. market.

The ineligible charges

In January, Bulgarian authorities raided Nexo’s offices successful Sofia owed to investigations into Nexo which started months ago.

In February, Bulgarian authorities charged 4 radical moving astatine Nexo and started investigating the lender. The prosecutors claimed these 4 individuals formed an organized transgression radical and committed wealth laundering, unlicensed banking activities, and taxation and machine crimes.

However, this is not the lone ineligible quality the lender has been progressive in. In June 2020, the U.S. Securities and Exchange Commission (SEC) charged the lender a $22.5 cardinal punishment for failing to registry its retail lending product. In January, Nexo settled with the SEC by paying $45 cardinal successful fines.

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