London-based cryptocurrency lender Nexo has been facing legal issues in various countries, including Bulgaria and the US. This has led the company to shut down two of its subsidiaries in the UK.
Shut Down of UK Subsidiaries
On May 11th, Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd. were shut down by the company. Antoni Trenchev, Nexo’s co-founder, claimed that the shut down was part of a company-wide “restructuring” and that the company is not considering exiting the UK market.
Bulgarian Investigation
Nexo is currently under investigation in Bulgaria for allegedly being involved in an organized crime scheme. In January, Bulgarian authorities raided Nexo’s offices in Sofia. In February, four people working at Nexo were charged with forming an organized crime group and committing various crimes, including money laundering, unlicensed banking activities, tax crimes, and computer crimes.
SEC Charges
Nexo also faced legal issues in the US when the Securities and Exchange Commission (SEC) charged the company with failing to register its retail lending product. In January, Nexo settled with the SEC by paying $45 million in fines.
Nexo’s shut down of its UK subsidiaries and ongoing legal issues in Bulgaria and the US have raised concerns about the company’s future. Despite claiming that the shut down was part of a company-wide restructuring, it remains to be seen how Nexo will move forward in light of these legal challenges.
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