STATEMENT OF THE SPOKESPERSON OF THE PROSECUTOR GENERAL, SIYKA MILEVA:
The Prosecutor's Office of the Republic of Bulgaria congratulates the American regulatory authorities for achieving success in verification of a company’s activity, which owners are subject to investigation in Bulgaria as well.
I understand the media's interest in the case that, as announced ten days ago, is a large-scale investigation, not only for us in Bulgaria, but also beyond our borders. Last information only confirms this.
The agreement reached between Nexo Capital Inc., registered in 2018 in the Cayman Islands and the competent regulatory authorities of the USA, is a clear indication that the persons who are subject to investigation in Bulgaria confess their guilt to the regulatory authorities, namely that they offered financial and banking services without authorization, circumventing and violating investor protection rules.
The Company agrees voluntary to pay a fine amounting to $45 million for not being properly registered in the United States under the Securities Act to trade cryptocurrency. The company will cease operations with respect to all US investors and will leave the US market.
The investigation in Bulgaria is related to an organized criminal group, set up for the purpose of committing financial crimes, including "money laundering", providing banking and financial services without a license, computer fraud and tax crimes.
In connection with the initiated pre-trial proceedings in our country, a request for legal assistance was sent to the USA at the end of last year. Requests for legal assistance and European investigation orders are also being prepared and will be send to other countries, with the aim to gather all the evidence necessary to clarify the overall factual situation in view of the subject to proof in the case
The work on the pre-trial proceedings continues, and I would like to emphasize that it is in close cooperation with our foreign partners. Numerous complaints from British citizens, alleging they had been defrauded by Nexo, were attached to the pre-trial proceedings.
In conclusion, I would like to congratulate, on behalf of the Prosecutor's Office of the Republic of Bulgaria, the American regulatory authorities for the success achieved in verifying the activities of "Nexo", whose owners are Bulgarian citizens.
I avail myself of the opportunity to express our readiness for active cooperation between the Prosecutor's Office of the Republic of Bulgaria and the USA institutions to achieve the common partnership goals of Bulgaria and the USA to uphold Euro-Atlantic values and the rule of law."