Nexo Returns: Bulgarian Crypto Lender Reenters U.S. Market

By bne Romero.my.id

Cryptocurrency lending platform Nexo announced on April 28th that they are re-entering the U.S. market due to the favorable stance towards the cryptocurrency sector demonstrated by then-President Donald Trump.

In August 2022, the state of New York initiated a lawsuit against the firm due to allegations of unlawful activities and fraudulent practices. Additionally, seven more U.S. states have taken legal steps against the company, directing Nexo to cease the provision of its deposit services within their jurisdictions.

"America has returned, and so have we," stated Nexo's co-founder Antoni Trenchev in a company press release after an event held in Sofia with Donald Trump Jr. in attendance.

Thanks to the foresight and guidance provided by President Donald J. Trump, along with his team and family, the United States has become a nation that embraces progress rather than hindering it. It’s a country that honors trailblazers now more than ever. Nexo is making its comeback in America—more robust, wiser, and set on achieving victory,’ he concluded.

Nexo cited Trump Jr.'s statement that cryptocurrencies and digital assets hold significance for the USA.

"I believe cryptocurrency represents the future of finance," stated Donald Trump Jr., according to the press release.

"We recognize the potential within the financial industry and aim to reintroduce those opportunities here in the U.S.," he stated.

In 2018, Nexo was established and is run by two Bulgarian entrepreneurs—Kosta Kunchev and Antoni Trenchev. The company accepts cryptocurrency deposits from customers and offers them interest payments. Additionally, it issues loans with cryptocurrencies serving as collateral.

Nexo conducts operations worldwide via entities registered in the UK, Switzerland, the US, and offshore locations. Within Bulgaria, Nexo has ownership of NDS, which employs approximately 600 people.

In 2023, Bulgarian prosecutors initiated an investigation into potential financial misconduct by Nexo, conducting raids on the company’s premises. They accused the firm of being part of a significant fraudulent operation involving activities such as money laundering, tax offenses, unauthorized banking practices, and computer scams. At that time, Nexo asserted that these allegations were driven by political motives and posed severe harm to their enterprise.

Later, the prosecution, which was then led by Ivan Geshev, brought charges against the company’s managers.

In December 2023, the Sofia City Prosecutors' Office dismissed all charges, stating that they found no proof of any misconduct involving the firm or its leadership.

In January of the subsequent year, Nexo stated that they had initiated an arbitration case against Bulgaria, seeking compensation exceeding $3 billion due to penalties imposed on their company.

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