Bulgaria Hit with $3 Billion Arbitration Claim by Nexo Over Controversial Crypto Probe

Nexo AG, a leading crypto lending platform, has taken a significant step by filing a substantial arbitration claim exceeding $3 billion against the Government of Bulgaria. The claim follows an investigation that led to a raid on Nexo’s Bulgarian office and charges against four individuals.

Will Nexo’s move grant them the justice they seek? Let’s find out.

Taking Legal Action

Nexo AG’s decision to file the arbitration claim comes in response to an investigation that triggered a raid on its Bulgarian office, resulting in charges against four individuals. The claim has been officially submitted to the Secretariat of the World Bank’s International Centre for Settlement of Investment Disputes in Washington, with legal representation provided by Pillsbury Winthrop Shaw Pittman LLP.

Read More About This: Nexo Cleared of Crypto Misconduct Charges in Bulgarian Investigation

Political Motivations at Play?

At the core of Nexo’s claim is the assertion that the investigation, which concluded with Bulgaria dropping charges in December due to a lack of evidence of criminal behavior, was politically motivated. The initial inquiry led prosecutors to charge four nationals with organized crime activities, including money laundering and unlicensed banking.

Nexo contends that the investigation had severe repercussions on its business opportunities and tarnished its brand reputation, despite the charges being dropped. They now seek substantial compensation through arbitration.

Curious About More Such Charges? Crypto Lawsuits of 2023: A Yearly Round-Up & Review

Stay tuned as the case unfolds after Nexo’s bold move to file a $3 billion arbitration claim against the State of Bulgaria.