Bulgarian authorities have ended an investigation into crypto lending platform Nexo, citing a lack of evidence to support the allegations.。According to the Bulgarian News Agency, the prosecutor's office stressed that cryptocurrencies are not regulated and that products offered by Nexo do not constitute financial instruments.。

Prosecutors unable to establish serious charges

The Bulgarian investigation into Nexo surfaced earlier this year with raids on the company's offices in Bulgaria, which charged a number of counts including tax offences, operating banking without a licence, money laundering and computer fraud.。The investigation focused on four Nexo executives - Kosta Kanchev, Antoni Trenchev, Kalin Metodiev and Trayan Nikolov。

However, prosecutors found no evidence of money laundering, tax or computer fraud.。In addition, they could not confirm that the platform was conducting banking activities without a license.。

The Bulgarian prosecutor's office dropped all charges against Nexo and his executives and confirmed there was no crime, making it clear that the entire attack on Nexo was political and should never have taken place.。Antoni Trenchev, co-founder and managing partner of Nexo, said: "This is a great help in returning our innocence and a vindication of all those who have followed the rules in the cryptocurrency space, and we are very pleased with the result.。"

Suspicious Patterns of Cryptocurrencies

Nexo mainly provides cryptocurrency lending services, offering up to 16% annual interest rates for cryptocurrency deposits.。According to its website, it has paid more than $200 million in interest to more than 6 million users.。The platform also offers services such as purchasing and exchanging cryptocurrencies, crypto deposit borrowing and payment cards.。

The platform has settled with US federal and state regulators for a total of $46.5 million.。According to U.S. authorities, Nexo's "interest-earning products" may be classified as securities, and as part of the settlement, the company agreed to stop offering the products in question.。

At the same time, Bulgarian authorities noted that Nexo, which operates online in the country, "probably" operates abroad.。