Bitcoin Forum

GM crypto fam.

So, I've recently found out that Nexo's offices in Bulgaria were raided, but I don't really understand the reasoning behind it, which is alleged money laundering.

Can someone confirm or elaborate on that?

Sources:

https://app.getresponse.com/view.html?x=a62b&m=BV3yIb&mc=9C&s=BtgXWnG&u=QcLhh&z=EznBtil&

https://forkast.news/headlines/nexo-office-bulgaria-raided-fraud-money-laundering-suspicion/

First of all.

You can reading the article too, there has some "Fast-Fact" in there. You can take that as decision maker, and plus you can try to pointed a discussion on their community asking to their official resource team member.

It's true or not & how they responding for the case.

What's the reasoning you need to understand? You just said what the reason was and every sources you link say the same thing. Well that and tax crimes (https://tokenist.com/nexos-token-saw-a-surge-in-trade-volume-as-companys-offices-raided/) but that goes without saying.

But as you are saying "allegedly", i would argue that it's pretty much sure thing they are guilty. You don't make joint operations of 300 people of agents, police and prosecutors raiding a place if you aren't sure what's going on.

now, that's looking bad for nexo. they have been very active with their marketing before. their site is still up but if you are one of their customers, better pull out your assets while you still have time.

their tagline - "grow your wealth and keep it secure with nexo" - hmmm seems that it will just end as a tagline but reality? better secure now your assets in your own wallet. better act fast before it is too late.

That news related to this one https://www.bloomberg.com/news/articles/2023-01-13/bulgaria-charges-four-people-in-probe-into-crypto-lender-nexo

Those four people were found by authorities doing some shady activities like money laundering and those people were linked to the nexo. That's why the police raided nexo's office. The decision that already been made by authorities to prevent shady things like money laundering and unlicensed banking activities.

I think that the reasons are quite clear if you wanna try to read other news before the police raided Nexo's office.

this is not the only problem they have been facing lately. They phase out its U.S. products and services over the coming months due to clashes with regulators https://www.reuters.com/technology/crypto-lender-nexo-quit-united-states-2022-12-05/
maybe this is the first sign that funds should be removed from there, but such a mass reaction will certainly only cause more problems for Nexo.

It is another company that has the lend and earn feature. But it's always to look for another source of information and news.
(https://cointelegraph.com/news/bulgarian-authorities-charge-four-individuals-following-raid-on-nexo-office-report)
So that article said that the police arrested four people in Nexo's office and that's why Nexo is also taking action to file a lawsuit against the police because they didn't follow the standard procedure. Nexo is asking for paying the damages the raid has made on their office.

Be careful with this exchange. After what happened to FTX Exchange, there are already a lot of centralized entities affected, by its contagion effect.
If you take a look at this exchange, they got very high APY/interest on their Earn Interest program which for me is very fishy. Recently, I heard Nexo faced some issues with regulators. For me, I will not use this exchange at all and withdrawal all my funds right now.

Either it's true or not, but there's a huge flood of withdrawal from Nexo's customer [1] which mean there's a whale don't trust with Nexo. Nexo is also quit from US [2], this mean the regulation on Nexo isn't really strict and it make me think there's a high chance Nexo has a financial problem that they don't want to show it to US regulators.

It's better to withdraw all of your coins if you stake on Nexo.

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[1] https://decrypt.co/119066/nexo-withdrawals-office-raid-money-laundering-investigation
[2] https://www.reuters.com/technology/crypto-lender-nexo-quit-united-states-2022-12-05/

Police wouldnt arrest someone or anyone without any warranty or evidence of a crime. That means they are guilty, there is no reasoning with that as they are arrested for a reason. Now the lawyers of Nexo would handle that. This kind of news can be fake or what but if it did happened and it did not sounded on the crypto community then they are hiding this fast fact about the incident.

With what happened with FTX, surely many centralized platform are beunf monitored at the moment.