Nexo dissolves UK subsidiaries

The crypto lender will close its UK offices due to legal unpredictability after investigations from both the SEC and Bulgarian officials.

Crypto lending firm Nexo has decided to close its UK offices because of continuing legal uncertainty in parts of Europe.

The London-based digital business has now completed the legal requirements to shut down Nexo Financial Services and Nexo Clearing and Custody from the UK’s companies register (known as Companies House).

Additionally, Nexo’s co-founder Antoni Trenchev said the firm will undergo a restructuring process, although it does not have any intention to leave the country at present.

Since launching the firm in 2018, Nexo claims to handle over five million customers, providing crypto lending, custody, loans, yield-generating investments and debit cards.

The company has 600 employees across three locations: London, the United Arab Emirates, and Bulgaria.

However, Nexo is currently under investigation in Bulgaria for its alleged involvement in a seemingly illegal scheme. In January, Bulgarian prosecuting solicitors charged four Bulgarian individuals in relation to the alleged crime.

The four nationals were accused of tax and cyber fraud alongside money laundering and illegal banking activities.

Additionally, The US Securities and Exchange Commission recently charged Nexo with a $22.5m penalty for failing to register its retail lending product, which the firm later settled by paying $45m in fines.

Since the news of the closure of its two UK businesses, the firm's native cryptocurrency is currently priced at $0.65 with a trading volume of $4.21m by the time of writing.

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Written by Isabella Aslam

Reporter

Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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