Cryptocurrency lending platform Nexo has submitted a $3 billion arbitration claim against the Republic of Bulgaria, following a raid on its office in 2023 and a subsequent probe by the Bulgarian Prosecutor General’s Office. Nexo alleges that these actions harmed its business prospects. The claim is filed with the International Centre for Settlement of Investment Disputes (ICSID). Nexo contends that politically motivated allegations by the Prosecutor General’s Office damaged its brand and reputation, leading to financial losses and the collapse of planned initiatives, including a capital-raising effort and a sponsorship deal with a major European football club. The Prosecutor General’s Office had dropped charges against Nexo after finding no evidence of criminal activity.
Nexo’s arbitration claim against Bulgaria highlights the challenges and risks faced by cryptocurrency businesses operating in regulatory environments that may be subject to political or legal pressures. The case underscores the potential impact of regulatory actions on a crypto company’s reputation, business opportunities, and financial prospects. Nexo’s pursuit of compensation through international arbitration also reflects the evolving legal landscape for the crypto industry, where companies seek redress through established dispute resolution mechanisms. (Source: news.bitcoin)
