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London-based crypto lender Nexo (NEXO) has shut down two of its subsidiaries positioned within the U.Okay. on Might 11, Bloomberg Information reported.
The lender can be going below an investigation in Bulgaria for allegedly being concerned in an organized crime scheme, the Bloomberg article famous.
Branches shut down
The lender utilized to the U.Okay. authorities to close down Nexo Monetary Providers Ltd. and Nexo Clearing and Custody Ltd.
Nexo’s Co-founder Antoni Trenchev claimed that the branches have been closed off resulting from company-wide “restructuring.”
In response to Trenchev, Nexo is “rethinking the best way” it goes about “servicing purchasers” however is just not contemplating exiting the U.Okay. market.
The authorized fees
In January, Bulgarian authorities raided Nexo’s places of work in Sofia resulting from investigations into Nexo which began months in the past.
In February, Bulgarian authorities charged 4 folks working at Nexo and began investigating the lender. The prosecutors claimed these 4 people shaped an organized crime group and dedicated cash laundering, unlicensed banking actions, and tax and laptop crimes.
Nevertheless, this isn’t the one authorized dispute the lender has been concerned in. In June 2020, the U.S. Securities and Alternate Fee (SEC) charged the lender a $22.5 million penalty for failing to register its retail lending product. In January, Nexo settled with the SEC by paying $45 million in fines.
The put up Crypto lender Nexo shuts down 2 UK-based subsidiaries appeared first on CryptoSlate.
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