Cryptocurrency Lender Nexo Dissolves Two UK Units

Troubled crypto lender Nexo has taken steps to dismantle two of its subsidiaries in the UK.

Bloomberg reports cryptocurrency lender Nexo is closing two of its units in the United Kingdom as it faces legal troubles in Bulgaria for its alleged involvement in illegal activities.

According to co-founder Antoni Trenchev, the London-based applied to dissolve Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd. as part of a “restructuring” plan.

Trenchev said the firm will not consider leaving the UK in its entirety but is “rethinking” how it goes about “servicing clients.”

Nexo Under Investigation Elsewhere in Europe

Nexo is currently the subject of a large-scale investigation in Bulgaria relating to allegations of money laundering, computer fraud, tax offences and various other crimes. Bulgarian authorities raided the lender’s offices in January, and prosecutors claim that around $94 billion has been processed by Nexo’s platform over the past five years.

Prosecutors added that there is evidence that at least of the lender’s users has been declared a financier of illegal and terrorist activities. At the time, Nexo was reportedly cooperating with investigations.

The United States Securities and Exchange Commission (SEC) charged the platform with failing to register the sale and offer of its crypto asset lending product. Nexo agreed to pay a penalty totalling $45 million to settle the charges.

$22.5 million was paid as a penalty for its unregistered offer, with an additional $22.5 million in fines to settle similar charges brought by state regulatory authorities.

Nexo came under fire from US regulators in eight states for allegedly offering its product without registering it as securities and for not properly disclosing the products to customers.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.