Authorities say these crypto companies have evidence that they have been officially declared financers of terrorism and are breaking the rules.
Cryptocurrency company Nexo under investigation
Crypto credit institution Nexo is being investigated by authorities in Bulgaria over allegations of money laundering, tax crimes and fraud. The Bulgarian Prosecutor’s Office announced on Thursday that an investigation has been launched into Nexo to “neutralize its criminal activities”. The prosecutor said that more than 300 people participated in the operation.
“Evidence has been gathered that a person who uses the platform and transfers cryptocurrencies has been officially declared a terrorist financer,” the statement said. it was stated. According to Bloomberg’s report, Nexo’s office in Bulgaria was raided by the police as part of the investigation.
Nexo said it is collaborating with relevant authorities and regulators in a thread on Twitter. The statement said:
‘As you know, there are officials at one of the Nexo offices in Bulgaria, the most corrupt country in the EU’ We are one of the strictest organizations on KYC/AML.’
The company lays off 110 employees
Cryptocurrency brokerage Blockchain.com said it laid off 28% of its workforce, or about 110 employees, adding to a gruesome week of bloodshed in the battered cryptocurrency industry. Thursday’s job losses came after Blockchain.com had to lay off about 150 employees in July as it grappled with a $270 million hit in loans to failing hedge fund Three Arrows Capital.
“The crypto ecosystem is facing significant headwinds as its trajectory recovers from the difficulties of the past year,” a Blockchain.com representative said in a statement. Then, ‘To better balance product offerings with demand, we made the difficult decision to cut operating costs and headcount in order to right-size the company.’ he added.
Blockchain’s losses have brought together a dire week in crypto, following news that Ethereum development firm ConsenSys plans to lay off 100 or more employees after US exchange Coinbase announced it would lay off 20% of its staff, or about 950.
It is estimated that around 27,000 people have lost their jobs in the sector since April last year. Blockchain.com now has a staff of 280, growing from 160 employees at the start of 2021. The company said all affected employees received severance packages, the details of which vary by country.
Thai SEC will investigate this company
As cryptokoin.com previously noted, Thailand’s top financial regulator will investigate the bankrupt Zipmex for violating local laws and hiring an ‘unauthorized digital wealth fund manager’. The SEC will investigate the platform’s ZipUP and ZipUP+ programs that enable users to generate returns on their investment.
The Observer had previously written a warning letter to Zipmex CEO Akalarp Yimwilai. The crypto firm has until January 12 to shed more light on its activities over the years, thereby avoiding regulatory scrutiny.
The company has been among the main victims of the prolonged bear market. In July last year, it halted customers’ withdrawals, citing volatile market conditions, and revealed $53 million in exposure to ailing crypto platforms Babel Finance ($48 million) and Celsius Network ($5 million).
Zipmex has begun discussing possible purchase agreements with ‘interested parties’ who may present a recovery plan. He also called for meetings with the SEC on an eventual recovery strategy and a multi-million fundraiser that could reimburse some customers. Despite efforts, Zipmex was unable to resolve its issues and filed for bankruptcy protection. Operating in Thailand, Singapore, Indonesia and Australia, the firm was among the leading cryptocurrency exchanges in Asia.
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