• Nexo’s offices were raided in Bulgaria on Jan. 12, 2023, leading to a surge in Bitcoin withdrawals from the platform.
• The company held 133,263 Bitcoin on that day, but as of Jan. 13, 2023, Nexo’s attestation indicates that the company now holds 124,939 Bitcoin, with $157.21 million worth of Bitcoin having been withdrawn during the past 24 hours.
• Nexo has denied any wrongdoing and has issued a statement to the community that the company adheres to very stringent anti-money laundering and know-your-customer policies.
On Thursday, January 12th 2023, the offices of crypto lender Nexo in Bulgaria were raided by investigators from various agencies. The company is accused of violating tax requirements, participating in money laundering and bypassing financial sanctions associated with the Russian Federation. In response to the raid, Nexo immediately issued a statement on Twitter to the community that the company adheres to “very stringent anti-money laundering and know-your-customer policies.”
In the 24 hours following the raid, a significant amount of Bitcoin was withdrawn from Nexo’s platform. According to Nexo’s real-time attestation website, the company held 133,263 Bitcoin on January 12th, valued at $2.5 billion using current BTC exchange rates. However, on January 13th, Nexo’s attestation indicates that the company now holds only 124,939 Bitcoin, with $157.21 million worth of Bitcoin having been withdrawn during the past 24 hours.
The withdrawal of Bitcoin from Nexo’s platform follows a trend of similar incidents occurring at other exchanges. In the past, exchanges have experienced withdrawal stress tests, and now Nexo is experiencing similar issues. Despite the withdrawal of Bitcoin from its platform, Nexo has denied any wrongdoing. The company also stated in its statement that it is “fully cooperating with the authorities and is confident that the matter will be resolved quickly and amicably.”
Despite the withdrawal of Bitcoin from its platform in the aftermath of the raid, Nexo remains committed to adhering to “very stringent anti-money laundering and know-your-customer policies” in order to protect its customers. The company also noted that it is “continuously strengthening its security and compliance procedures.” In the meantime, Nexo is continuing to work with the authorities in order to resolve the investigation as quickly and amicably as possible.