Nexo Targets $3B in Crypto Lending Damages From Bulgaria

• Cryptocurrency Firm Nexo Seeks $3 Billion in Damages from Bulgaria
• Nexo's Accusations Against Bulgaria
• Bulgarian Investigation Ends Inconclusively
• Clampdown on Crypto Activities in 2022
• Nexo's Claim of Damages
• Submission of Claim to ICSID
• Related Information

Cryptocurrency Firm Nexo Seeks $3 Billion in Damages from Bulgaria

Cryptocurrency service provider Nexo has lodged an arbitration claim against the Republic of Bulgaria. The claim seeks $3 billion in compensation for damages.

Nexo's Accusations Against Bulgaria

Nexo alleges that Bulgaria engaged in improper and politically driven actions. These actions allegedly included groundless and harsh criminal investigations. The information was released in a statement communicated via email on Wednesday.

Bulgarian Investigation Ends Inconclusively

In December, the Prosecutor's Office of Bulgaria concluded its probe into Nexo for suspected money laundering infractions. The investigation was closed due to lack of evidence supporting any criminal behavior.

Clampdown on Crypto Activities in 2022

The previous year was marked by increased scrutiny and restrictions on crypto-related operations. This was in response to the abrupt shutdown of FTX$3.28 -5.38% and the downfall of multiple other crypto companies during the second half of 2022.

Nexo's Claim of Damages

Nexo asserts that these investigations severely impacted its brand and standing. As a result, it lost specific business opportunities including a potential Initial Public Offering (IPO) in the United States.

Submission of Claim to ICSID

The claim has been forwarded to the International Centre for Settlement of Investment Disputes (ICSID) based in Washington, DC.

Related Information

Crypto lending company Ledn provides custodied loans with low-risk profile.

Edited by Jonathan Stoker