Cryptocurrency financial services company Nexo has filed an international arbitration case against Bulgaria, according to a report.
The case, filed on January 18th with the International Center for Settlement of Investment Disputes (ICSID) in the USA, comes after Bulgarian prosecutors dropped an investigation into Nexo’s activities citing insufficient evidence.
The Bulgarian companies Mirastar and NDS, part of the Nexo group, are listed as plaintiffs in the case against the Bulgarian Ministry of Finance and Prosecutor’s Office. ICSID facilitates dispute resolution through arbitration and fact-finding in investor-state disputes.
Nexo’s legal action follows prosecutors abandoning an investigation that began with high-profile raids and accusations.
In December 2023, Nexo co-founder Antoni Trenchev revealed the dropped investigation could cost Bulgaria millions in damages. Though Trenchev initially considered the European Court of Human Rights, Nexo has opted for international arbitration in the USA.
Trenchev and partner Kosta Kanchev had faced accusations related to unauthorized banking transactions on Nexo’s platform involving lending and deposits without proper authorization.
Despite initial accusations, prosecutors concluded there was insufficient evidence of a crime after interviews and examinations.
