Crypto lender Nexo shuts down 2 UK-based subsidiaries Crypto lender Nexo shuts down 2 UK-based subsidiaries
Nexo is also going under investigation in Bulgaria for allegedly being involved in an organized scheme.
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Updated: May. 12, 2023 at 8:47 am UTC
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London-based crypto lender Nexo (NEXO) has shut down two of its subsidiaries located in the U.K. on May 11, Bloomberg News reported.
The lender is also going under an investigation in Bulgaria for allegedly being involved in an organized crime scheme, the Bloomberg article noted.
Branches shut down
The lender applied to the U.K. authorities to shut down Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd.
Nexo’s Co-founder Antoni Trenchev claimed that the branches were closed off due to company-wide “restructuring.”
According to Trenchev, Nexo is “rethinking the way” it goes about “servicing clients” but is not considering exiting the U.K. market.
The legal charges
In January, Bulgarian authorities raided Nexo’s offices in Sofia due to investigations into Nexo.
In February, Bulgarian authorities charged four people working at Nexo. The prosecutors claimed these individuals formed an organized crime group and committed money laundering, unlicensed banking activities, and tax and computer crimes. However, the allegations failed to come to a conclusion, as various Bulgarian institutions confirmed Nexo’s lack of wrongdoing.
However, this is not the only legal dispute the lender has been involved in. The U.S. Securities and Exchange Commission (SEC) charged the lender a $22.5 million penalty for failing to register its retail lending product. In January, Nexo settled with the SEC by paying $45 million in fines.
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Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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The Nexo token is the world’s first dividend-paying asset-backed security token and is backed by the underlying assets of Nexo’s loan portfolio.
Nexo
Nexo is a leading global financial institution specializing in digital asset services, particularly focusing on cryptocurrency lending, exchange, and financial management solutions.