Crypto Lender Nexo Sues Bulgaria For $3B Over 'Politically Motivated' Investigation, Office Raid

Crypto lender Nexo AG on Wednesday said it filed a lawsuit against the Republic of Bulgaria for more than $3 billion for "wrongful and politically motivated actions" against its employees.

The lawsuit, filed at the International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C., is led by the U.S. law firm Pillsbury Winthrop Shaw Pittman.

In a press release shared with Benzinga, Nexo said these actions include criminal investigations against Nexo and its executives, which the company claimed were oppressive and unjustified.

Bulgarian prosecutors raided the offices of Nexo in January 2023 following an investigation into the company.

The Sofia City Prosecutor's Office eventually dismissed these proceedings in December 2023, citing a lack of evidence for any criminal activity.

The cleared individuals include Nexo's management figures Kosta Kantchev, Antoni Trenchev, Kalin Metodiev and Trayan Nikolov.

Nexo's claim focuses on substantial damages and lost business opportunities resulting from the Bulgarian government's actions.

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The company asserts these events tarnished its reputation, disrupted its growth trajectory and led to significant financial losses.

Notably, Nexo was in the advanced stages of securing funding and planning an initial public offering on a major U.S. stock exchange, which could have valued the company between $8 billion and $12 billion.

Additionally, the firm was nearing a significant partnership with a major European football club, a deal poised to elevate its brand presence globally.

Antoni Trenchev, Nexo's co-founder, said that despite the challenges posed by the Bulgarian authorities, the company continued its operations but faced slowed growth and delayed opportunities.

With the dismissal of the criminal allegations, Trenchev emphasized Nexo's commitment to seeking legal redress for the reputational and financial harm experienced.

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