Troubled cryptocurrency agency Nexo is planning to sue the Bulgarian authorities within the aftermath of large raids on the firm’s workplaces in Sofia.

Nexo has complained concerning the actions of the regulation enforcement authorities in response to the investigation in opposition to the agency, the Bulgarian Information Companyreported on Jan. 13.

The corporate is reportedly making ready to file a lawsuit in opposition to the authorities to hunt compensation for damages attributable to the abrupt police interruption. One report suggested that investigators didn’t present a search warrant for hours, whereas inspectors had by no means recognized themselves.

Nexo believes that the raids performed in its workplaces yesterday have been in opposition to the regulation and demonstrated “complete incompetence of these conducting this shameful motion.” Nexo additionally described the actions in opposition to the agency because the “native Bulgarian arbitrariness” which allegedly aimed to “destroy and loot a affluent enterprise.”

The agency additionally emphasized that Nexo does not supply any companies for Bulgarian residents resulting from potential points with the native authorities. The corporate additionally reiterated that it has been compliant with Anti-Cash Laundering necessities in addition to sanctions in opposition to Russia, along with cooperating with main crypto intelligence companies like Chainalysis.

The agency expressed confidence that it’s going to win the lawsuit, which is able to present Nexo with compensation for the injury attributable to the investigation, stating:

“The compensations that Bulgaria pays after the claims are filed and received by Nexo will likely be one other document breaking quantity of tons of of thousands and thousands, however, sadly, they are going to be on the expense of the Bulgarian taxpayer.”

Siyka Mileva, a spokesperson for Bulgaria’s chief prosecutors, said that the investigation in opposition to Nexo concerned greater than 300 cops, prosecutors and nationwide safety brokers. She additionally famous that the probe is presently restricted to Bulgaria, with native cops looking 15 addresses associated to Nexo as of Jan. 12. Different reviews indicated that some international businesses have been additionally concerned within the investigation.

Nexo’s assertion got here shortly after the corporate reportedly skilled large outflows amid the investigation reviews.

Based on crypto analytics platform Arkham Intelligence, Nexo has seen “floods of outflows” for the reason that information broke. Blockchain tracker Cielo Finance additionally reported on giant withdrawals from Nexo, highlighting transactions with greater than 200,000 USD Coin (USDC) stablecoin leaving the platform on Jan. 12.

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A spokesperson for Nexo denied any irregular outflows to Cointelegraph although. “The present outflows on the platform that we’re seeing are regular, contemplating the general market circumstances,” the Nexo consultant mentioned. The spokesperson added that the outflows have accounted for two% of Nexo’s complete belongings below administration of $2.3 billion.