Bulgaria is also investigating Nexo.
London-based crypto lender Nexo ( NEXO ) closed its two UK subsidiaries on May 11, Bloomberg News reported.
The company is also being investigated by Bulgari for its involvement in an organized crime scheme.
Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd. are two subsidiaries that Nexo has applied to the British government to close.
Antoni Trenchev, co-founder of Nexo, announced that the company had to close branches in order to restructure.
According to Trenchev, Nexo is “rethinking how it serves customers” but is not considering leaving the UK market.
In January, Bulgarian authorities raided Nexo’s offices in Sofia to investigate Nexo.
In February, Bulgarian authorities charged four people with working at Nexo. Prosecutors claimed these individuals formed an organized crime group and carried out money laundering, illegal banking, tax and computer crimes.
However, the allegations did not reach a formal conclusion, as many Bulgarian organizations have confirmed Nexo did not commit any wrongdoing.
The US SEC fined Nexo $22.5 million for failing to register its retail lending product. In January, Nexo paid $45 million in fines to settle the case.
