Crypto
lending firm Nexo is making efforts to disband two of its subsidiaries in the
United Kingdom. The units are Nexo Financial Services Limited and Nexo
Clearing, according to a regulatory filing with the UK Companies House seen by
Bloomberg.
However, Antoni Trenchev, Nexo Co-Founder,
told the outlet that the firm is not planning to exit European country. Instead, the firm says it is conducting “some restructuring” and “rethinking” the way it delivers
its services to clients.
The new
development comes amidst Nexo’s legal battle in Bulgaria. In January, Bulgarian
prosecutors launched a probe
against Nexo over
alleged anti-money laundering (AML) failure and violation of sanctions against
Russia.
As part of
the probe, Bulgaria’s local investigators in collaboration with foreign agents
raided Nexo’s Bulgarian offices with a total of 15 offices checked. Prosecutors
also alleged that one of Nexo’s clients is a person linked to financial
terrorism.
Local media reported that Siika Mileva, Bulgaria’s Prosecutor General, through a
spokesperson, alleged that Nexo Co-Founders, who are Bulgarians, ran shell
companies. Mileva noted that Nexo processed over €94 billion in the last five
years.
However,
reacting to the news, Nexo in a lengthy Twitter post accused the prosecutors
of adopting “the kick first, ask questions later approach.” The firm noted
that it had rejected a lot of business opportunities as it never compromises with its
very stringent AML and know-your-customer policies.
“Despite
being fully automated, Nexo has 30+ AML compliance officers who ensure that we
retain a real-time picture of our clients, which includes adverse media publications,
OFAC sanctions lists, and a source & flow of funds, etc.,” Nexo
explained.
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 in
penalty to the
Securities and Exchange Commission (SEC) and other state regulators for offering and
selling crypto which the SEC considers as unregistered securities. The federal securities regulator got $22.5
million while the remainder went to state financial watchdogs.
In
addition, the crypto lender paid an extra $1.5 million to the State of New York for services
it 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.
Crypto
lending firm Nexo is making efforts to disband two of its subsidiaries in the
United Kingdom. The units are Nexo Financial Services Limited and Nexo
Clearing, according to a regulatory filing with the UK Companies House seen by
Bloomberg.
However, Antoni Trenchev, Nexo Co-Founder,
told the outlet that the firm is not planning to exit European country. Instead, the firm says it is conducting “some restructuring” and “rethinking” the way it delivers
its services to clients.
The new
development comes amidst Nexo’s legal battle in Bulgaria. In January, Bulgarian
prosecutors launched a probe
against Nexo over
alleged anti-money laundering (AML) failure and violation of sanctions against
Russia.
As part of
the probe, Bulgaria’s local investigators in collaboration with foreign agents
raided Nexo’s Bulgarian offices with a total of 15 offices checked. Prosecutors
also alleged that one of Nexo’s clients is a person linked to financial
terrorism.
Local media reported that Siika Mileva, Bulgaria’s Prosecutor General, through a
spokesperson, alleged that Nexo Co-Founders, who are Bulgarians, ran shell
companies. Mileva noted that Nexo processed over €94 billion in the last five
years.
However,
reacting to the news, Nexo in a lengthy Twitter post accused the prosecutors
of adopting “the kick first, ask questions later approach.” The firm noted
that it had rejected a lot of business opportunities as it never compromises with its
very stringent AML and know-your-customer policies.
“Despite
being fully automated, Nexo has 30+ AML compliance officers who ensure that we
retain a real-time picture of our clients, which includes adverse media publications,
OFAC sanctions lists, and a source & flow of funds, etc.,” Nexo
explained.
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 in
penalty to the
Securities and Exchange Commission (SEC) and other state regulators for offering and
selling crypto which the SEC considers as unregistered securities. The federal securities regulator got $22.5
million while the remainder went to state financial watchdogs.
In
addition, the crypto lender paid an extra $1.5 million to the State of New York for services
it 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.
