The cryptolending firm, Nexo is making efforts to disband two of its subsidiaries in theUnited Kingdom. The units are Nexo Financial Services Limited and NexoClearing, according to a regulatory filing with the UK Companies House seen byBloomberg.
However, Antoni Trenchev, Nexo's Co-Founder,told the outlet that the firm is not planning to exit European countries. Instead, the firm says it is conducting “some restructuring” and “rethinking” the way it deliversits services to clients.
The newdevelopment comes amidst Nexo’s legal battle in Bulgaria. In January, Bulgarianprosecutors launched a probeagainst Nexo overalleged anti-money laundering (AML) failure and violation of sanctions againstRussia.
As part ofthe probe, Bulgaria’s local investigators in collaboration with foreign agentsraided Nexo’s Bulgarian offices with a total of 15 offices checked. In addition, Prosecutors alleged that one of Nexo’s clients is a person linked to financialterrorism.
Local media reported that Siika Mileva, Bulgaria’s Prosecutor General, through aspokesperson, alleged that Nexo Co-Founders, who are Bulgarians, ran shellcompanies. Mileva noted that Nexo processed over €94 billion in the last fiveyears.
However,reacting to the news, Nexo in a lengthy Twitter post accused the prosecutorsof adopting “the kick first, ask questions later approach." The firm notedthat it had rejected a lot of business opportunities as it never compromises with itsvery stringent AML and know-your-customer policies.
“Despitebeing fully automated, Nexo has 30+ AML compliance officers who ensure that weretain a real-time picture of our clients, which includes adverse media publications,OFAC sanctions lists, and a source & flow of funds, etc.,” Nexoexplained.
Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/
— Nexo (@Nexo) January 12, 2023
Nexo Settles with US Watchdogs
Meanwhile,in the United States, Nexo recently paid $45 million as a penalty to theSecurities and Exchange Commission (SEC) and other state regulators for offering andselling crypto which the SEC considers unregistered securities. The federal securities regulator got $22.5million while the remainder went to state financial watchdogs.
Inaddition, the crypto lender paid an extra $1.5 million to the State of New York for servicesit offered through a virtual currency trading platform called Nexo Exchange.
Nexo has reached a final landmark resolution with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), consisting of all 50 U.S. States & 3 territories and the Attorney General of New York.🧵https://t.co/modjbPsOdV
— Nexo (@Nexo) January 19, 2023
Zenfinex, Trading 212 Executives; IG's Warning on TRY; read today's news nuggets.
The cryptolending firm, Nexo is making efforts to disband two of its subsidiaries in theUnited Kingdom. The units are Nexo Financial Services Limited and NexoClearing, according to a regulatory filing with the UK Companies House seen byBloomberg.
However, Antoni Trenchev, Nexo's Co-Founder,told the outlet that the firm is not planning to exit European countries. Instead, the firm says it is conducting “some restructuring” and “rethinking” the way it deliversits services to clients.
The newdevelopment comes amidst Nexo’s legal battle in Bulgaria. In January, Bulgarianprosecutors launched a probeagainst Nexo overalleged anti-money laundering (AML) failure and violation of sanctions againstRussia.
As part ofthe probe, Bulgaria’s local investigators in collaboration with foreign agentsraided Nexo’s Bulgarian offices with a total of 15 offices checked. In addition, Prosecutors alleged that one of Nexo’s clients is a person linked to financialterrorism.
Local media reported that Siika Mileva, Bulgaria’s Prosecutor General, through aspokesperson, alleged that Nexo Co-Founders, who are Bulgarians, ran shellcompanies. Mileva noted that Nexo processed over €94 billion in the last fiveyears.
However,reacting to the news, Nexo in a lengthy Twitter post accused the prosecutorsof adopting “the kick first, ask questions later approach." The firm notedthat it had rejected a lot of business opportunities as it never compromises with itsvery stringent AML and know-your-customer policies.
“Despitebeing fully automated, Nexo has 30+ AML compliance officers who ensure that weretain a real-time picture of our clients, which includes adverse media publications,OFAC sanctions lists, and a source & flow of funds, etc.,” Nexoexplained.
Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/
— Nexo (@Nexo) January 12, 2023
Nexo Settles with US Watchdogs
Meanwhile,in the United States, Nexo recently paid $45 million as a penalty to theSecurities and Exchange Commission (SEC) and other state regulators for offering andselling crypto which the SEC considers unregistered securities. The federal securities regulator got $22.5million while the remainder went to state financial watchdogs.
Inaddition, the crypto lender paid an extra $1.5 million to the State of New York for servicesit offered through a virtual currency trading platform called Nexo Exchange.
ADVERTIsem*nT
Nexo has reached a final landmark resolution with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), consisting of all 50 U.S. States & 3 territories and the Attorney General of New York.🧵https://t.co/modjbPsOdV
— Nexo (@Nexo) January 19, 2023
Zenfinex, Trading 212 Executives; IG's Warning on TRY; read today's news nuggets.
