site.bta Cryptocurrency Trading Platform Nexo Sues Bulgaria for USD 3 Bln Damage from "Repressive Investigation"

The cryptocurrency trading platform Nexo said Wednesday that has lodged a claim of over USD 3 billion against Bulgaria for considerable material and reputational damage resulting from what it calls "a repressive investigation". The claim has been filed at the International Centre for Settlement of Investment Disputes (an arbitration institution that is part of the World Bank Group) in Washington, D.C.

"As a direct result of the politically motivated attack by the Bulgarian Prosecutor General's Office in January 2023, Nexo’s brand and reputation were damaged, lucrative business opportunities were lost, Nexo AG’s investments in Bulgaria were harmed, and several of Nexo’s planned business activities, of which the following are examples, have been impacted by the allegations and had to be abandoned," said the company.

It goes on to catalogue the detriment it has suffered. "Nexo had been working with three leading US investment banks on a funding round and an initial public offering on a major US stock exchange, with an indicative valuation between $8bn and $12bn. Nexo was days away from signing a multi-year strategic alliance with a major European football club, giving it exposure to its 330,000,000+ supporters across the globe. This partnership would have made Nexo the club’s official digital wallet and main partner. The roll-out of an innovative club-branded payment card was in the works – a game changer for both Nexo and the blockchain industry, as it would have offered an instant first-time gateway for millions of users to the rapidly expanding digital asset class."  

The announcement comes about a month after prosecutors, in December 2023, abandoned a yearlong investigation against the firm about money laundering, tax crimes and other offences for lack of evidence. One of the accused, Antoni Trenchev, said back when the probe was launched that the company will seek USD 1 billion in damages from the Bulgarian State for tarnished reputation. 

Nexo intend to donate up to 20% of the compensation received to "the most needy and neglected sectors in the country - children's healthcare and education". The main priority will be to support the construction of much-needed children's hospitals and wards in Bulgaria, as well as various initiatives to increase the competitiveness of the University of St. Kliment Ohridski in Sofia on the global educational scene.