Cryptocurrency lending company Nexo is in the process of dissolving two of its UK subsidiaries. The two units are Nexo Financial Services Limited and Nexo Clearing, according to a regulatory filing with UK Companies House seen by
bloomberg.
However, Nexo co-founder Anthony Trenchev told the outlet that the company has no plans to exit a European country. Instead, the company says it is doing “some restructuring” and “rethinking” the way it serves customers.
The new development comes in the midst of Nexo’s legal battle in Bulgaria. In January, Bulgarian prosecutors launched an investigation against Nexo for alleged failure to combat money laundering and violations of sanctions against Russia.
As part of the investigation, local Bulgarian detectives in collaboration with foreign agents raided the Bulgarian offices of Nexo with a total of 15 offices checked. Prosecutors also alleged that one of Nexo’s customers is a person associated with financial terrorism.
Local media reported that Seka Mileva, the Bulgarian public prosecutor, through a spokesperson, alleged that the founders of Nexo, who are Bulgarians, run shell companies. Mileva noted that Nexo has processed more than 94 billion euros in the past five years.
However, in reaction to the news, Nexo accused prosecutors of adopting a “step first, ask questions later” approach. and Know Your Customer policies.
“Although it is fully automated, Nexo has over 30 AML Compliance Officers who ensure that we maintain a real-time picture of our clients, which includes negative media publications, OFAC sanctions lists, source and flow of funds, etc. It,” Nexo explained.
Over the years, we’ve turned down a lot of business because Nexo has never compromised with our strict anti-money laundering and Know Your Customer policies. But we always know that this is how you build a sustainable business. 1 /
– Nexus January 12, 2023
Nexo makes peace with the American security guards
Meanwhile, in the US, Nexo recently paid a $45 million fine to the Securities and Exchange Commission (SEC) and other government regulators for offering and selling cryptocurrencies that the SEC considers unregistered securities. The Federal Securities Regulatory Commission got $22.5 million with the rest going to government financial watchdogs.
In addition, the cryptocurrency lender paid an additional $1.5 million to the state of New York for services it provided through a virtual currency trading platform called Nexo Exchange.
Nexo reached a final historic decision with the US Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), which is made up of all 50 US states and three territories, and the New York attorney general.https://t.co/modjbPsOdV
– Nexus January 19, 2023
Zenfinex, Trading 212 Executives; IG’s warning about TRY; Read snippets of today’s news.
Cryptocurrency lending company Nexo is in the process of dissolving two of its UK subsidiaries. The two units are Nexo Financial Services Limited and Nexo Clearing, according to a regulatory filing with UK Companies House seen by
bloomberg.
However, Nexo co-founder Anthony Trenchev told the outlet that the company has no plans to exit a European country. Instead, the company says it is doing “some restructuring” and “rethinking” the way it serves customers.
The new development comes in the midst of Nexo’s legal battle in Bulgaria. In January, Bulgarian prosecutors launched an investigation against Nexo for alleged failure to combat money laundering and violations of sanctions against Russia.
As part of the investigation, local Bulgarian detectives in collaboration with foreign agents raided the Bulgarian offices of Nexo with a total of 15 offices checked. Prosecutors also alleged that one of Nexo’s customers is a person associated with financial terrorism.
Local media reported that Seka Mileva, the Bulgarian public prosecutor, through a spokesperson, alleged that the founders of Nexo, who are Bulgarians, run shell companies. Mileva noted that Nexo has processed more than 94 billion euros in the past five years.
However, in reaction to the news, Nexo accused prosecutors of adopting a “step first, ask questions later” approach. and Know Your Customer policies.
“Although it is fully automated, Nexo has over 30 AML Compliance Officers who ensure that we maintain a real-time picture of our clients, which includes negative media publications, OFAC sanctions lists, source and flow of funds, etc. It,” Nexo explained.
Over the years, we’ve turned down a lot of business because Nexo has never compromised with our strict anti-money laundering and Know Your Customer policies. But we always know that this is how you build a sustainable business. 1 /
– Nexus January 12, 2023
Nexo makes peace with the American security guards
Meanwhile, in the US, Nexo recently paid a $45 million fine to the Securities and Exchange Commission (SEC) and other government regulators for offering and selling cryptocurrencies that the SEC considers unregistered securities. The Federal Securities Regulatory Commission got $22.5 million with the rest going to government financial watchdogs.
In addition, the cryptocurrency lender paid an additional $1.5 million to the state of New York for services it provided through a virtual currency trading platform called Nexo Exchange.
Nexo has reached a final historic decision with the US Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), which is made up of all 50 US states and three territories, and the New York attorney general.https://t.co/modjbPsOdV
– Nexus January 19, 2023
Zenfinex, Trading 212 Executives; IG’s warning about TRY; Read snippets of today’s news.