Nexo AG Files $3 Billion Arbitration Claim against Bulgaria

<p>Nexo AG and its subsidiaries have initiated legal action
against the Republic of Bulgaria, filing an International Centre for Settlement
of Investment Disputes arbitration claim exceeding $3 billion. The
claim alleges damages and lost opportunities resulting from what Nexo describes
as wrongful and politically motivated actions by Bulgarian authorities.</p><p>The Dismissal of Charges against Nexo's Leadership</p><p>Represented by the prestigious U.S. law firm Pillsbury
Winthrop Shaw Pittman LLP, Nexo AG's claim centers on the aftermath of
unjustified and oppressive criminal investigations. These investigations,
initially launched by the Bulgarian Prosecutor General's Office in January
2023, were subsequently dismissed for lack of merit on December 21, 2023,
clearing Nexo and its management, including Kosta Kantchev, Antoni Trenchev,
Kalin Metodiev, and Trayan Nikolov.</p><p>“Despite the unjustified attacks
by the Bulgarian authorities in January 2023 taking a significant toll on the
entire Nexo group, we were able to continue business operations,” said
Trenchev, the Co-Founder of Nexo. “However, our growth path has been slowed down
and opportunities lost or significantly delayed. I personally promised 10
months ago that we would explore all legal means available to secure financial
compensation for Nexo."</p><p>Deborah Ruff, Pillsbury’s Head of Arbitration, expressed
confidence in representing Nexo in what she called a "battle for
justice." Matthew Oresman, the Managing Partner of Pillsbury’s London Office,
affirmed belief in the strength of Nexo's claim after a thorough examination of
the case.</p><blockquote><p lang="en" dir="ltr">Crypto lender Nexo seeks $3 bln in damages from Bulgaria over aborted investigation <a href=""></a> <a href=""></a></p>— Reuters (@Reuters) <a href="">January 24, 2024</a></blockquote><p>Reputational
Damage and Financial Setbacks</p><p>According to the firm, the politically motivated attack in
2023 had severe repercussions on Nexo, damaging its brand and reputation. As a
result, lucrative business opportunities were lost, and Nexo AG's investments
in <a href="">Bulgaria</a>
suffered setbacks. </p><p>Several planned business activities had to be abandoned,
impacting the company's growth trajectory. <a href="">Nexo</a>'s collaboration with
three leading US investment banks on a funding round and an initial public
offering, with an indicative valuation between $8 billion and $12 billion, was
disrupted.</p><p>A strategic alliance with a major European football club,
set to make Nexo the club's official <a href="">digital wallet</a>
and main partner, was halted just days away from signing. This partnership involved plans for an innovative club-branded payment card, a potential
game-changer for the blockchain industry. Nexo's reputation and brand were
tarnished, resulting in missed opportunities, lost revenue, and a decline in
company value.</p>

This article was written by Tareq Sikder at

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