Crypto lender Nexo AG has officially filed an arbitration claim worth more than $3 billion against Bulgaria. The filing follows the conclusion of an investigation into the company’s activities, which included a raid on its Bulgarian office and criminal charges filed against four individuals.
Nexo submitted the claim at the Secretariat of the International Centre for Settlement of Investment Disputes (ICSID) in Washington, according to a statement from the company. Notably, Nexo is being represented by US law firm Pillsbury Winthrop Shaw Pittman LLP. The crypto lender contends that the investigation was politically motivated, leading to missed business opportunities and reputational damage.
The investigation into Nexo began after Bulgarian authorities raided the company’s office and charged four people. However, the specific charges against these individuals, as well as the exact nature of the alleged offenses, are still unclear. The probe has since concluded, and it is this outcome that has prompted Nexo to pursue its hefty arbitration claim against Bulgaria.
It remains to be seen how this landmark legal action unfolds. In the meantime, legal professionals worldwide are keeping a close eye on the case, which could have significant ramifications for the rapidly evolving crypto industry.