Nexo AG, the Swiss-based crypto lender, along with its affiliated companies, has submitted a $3 billion arbitration claim against Bulgaria. In its latest legal filing, the company expressed that the investigation has negatively impacted its reputation and significantly reduced the value for shareholders.
Nexo AG contends that these actions were driven by political motives targeting the company and its executives, describing them as unjust and oppressive criminal investigations.
Nexo AG has submitted a document to the International Centre for Settlement of Investment Disputes (ICSID) which will be responsible for managing the dispute between the two parties, part of the World Bank and the company is seeking compensation of over $3 billion in damages.
The case was officially registered on January 18, and Bulgaria’s finance ministry confirmed receiving a request for arbitration. A specialized inter-departmental committee will review the request and propose the next course of action.
On December 21, 2023, the country officially cleared the lender of any wrongdoing in its investigation into alleged money laundering. Although criminal proceedings against the company and its management were terminated, the firm believes that the case negatively impacted its opportunity to go public in the United States.
