Breaking: Crypto Lending Giant Nexo To Shut Down UK Offices

According to recent documents, the London-based crypto lending business Nexo has completed legalities to remove Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd. from the United Kingdom’s companies register. Additionally, as per a recent Bloomberg report, Nexo co-founder Antoni Trenchev stated that the company was undergoing a restructuring process, however, the firm did not intend to leave the country at this time.

Nexo Dissolves UK Entities

Nexo, which launched in 2018, claims to have more than 5 million customers and provides services including crypto lending, custody, loans, yield-generating investments, and debit cards. According to an attestation that was supplied by the accounting firm Moore Johannesburg on Thursday, the firm is responsible for the management of assets totaling around $2 billion on its platform.

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In January of this year, prosecuting solicitors in Bulgaria brought charges against four individuals in connection with their investigation into Nexo. The Bulgarian nationals have been accused of constructing an organized crime gang that was involved in tax and cyber fraud, as well as money laundering & illegal banking activities. Nonetheless, after further reflection, Trenchev — a noted former legislator in Bulgaria — referred to the allegations as “ludicrous.”

Growing Regulatory Hurdles

Nexo announced in December last year that it would cease offering its products and services in the United States. But, it later reached an agreement to pay the US Securities and Exchange Commission (SEC) and state authorities a total of $45 million in fines to settle claims of violating securities laws in the country.

At the moment, the company is made up of around 600 workers who are dispersed across three locations: London, the United Arab Emirates, and Bulgaria. In the wake of this crypto news, the price of Nexo’s native cryptocurrency has dropped by 0.78% in the past one hour and is currently exchanging hands at $0.65.

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