- Nexo, with 5+ million users, offers various crypto services but is closing in the UK.
- Last year, Nexo paid $45M to settle charges of violating US securities laws.
Records show that Nexo, a crypto lending firm based in London, has taken the necessary steps to remove its subsidiaries, Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd., from the UK’s companies register.
According to a recent Bloomberg article, Nexo’s co-founder Antoni Trenchev stated that the company is undergoing a reorganization process but has no intentions of leaving the country. Nexo, established in 2018, has more than 5 million users and provides various cryptocurrency services, such as lending, custody, loans, investment opportunities, and debit cards.
Troubles in the Past
On Thursday, Moore Johannesburg, an accounting firm in South Africa, confirmed that it oversaw nearly $2 billion in assets on its platform. Earlier this year, Bulgarian prosecutors filed charges against four individuals who were under investigation for their connections to Nexo.
Bulgarian nationals are suspected of various crimes, including tax and online fraud, as well as money laundering and illegal banking operations, as part of an organized criminal group. However, a well-known former Bulgarian lawmaker, Trenchev, has dismissed these accusations as “ridiculous” after reconsidering them.
In December of last year, Nexo announced that it would stop selling products in the United States. However, they later resolved charges of violating US securities laws by agreeing to pay $45 million in penalties to the US Securities and Exchange Commission (SEC) and state authorities.
The organization currently has around 600 employees spread across three countries: London, the United Arab Emirates, and Bulgaria.
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