site.btaAd Hoc Committee of Inquiry into Nexo Case Hears National Security Agency Head Tonchev

The Ad Hoc Committee to Establish All Facts and Circumstances Regarding the Activities of Nexo, Nexo Capital and Connected Persons  Tuesday held an open hearing of State Agency for National Security (SANS) head Plamen Tonchev. At the start of the hearing, Committee Chairman Daniel Mitov (GERB-UDF) said that the prosecution service has sent a letter reading that Prosecutor General cannot attend.

The Ad Hoc Committee was set up on January 18 to look into conduct of potential illegal activities, including links with persons and structures financing terrorism and organized crime, as well as the financing of political parties and other legal entities in Bulgaria by the Nexo cryptocurrency trading platform and Nexo Capital.

Tonchev said that in July 2022, the SANS received information in accordance with the Measures against Money Laundering Act about suspicious financial operations with the participation of Bulgarian citizens and companies connected to Nexo. He specified that a Bulgarian financial institution was involved. The SANS undertook a series of activities to clarify the source of the resources involved in the suspicious financial operations, as well as the role of the natural persons and legal entities participating in them.

The SANS established that Nexo's group of companies are active in various countries and jurisdictions, including in offshore zones. As part of their activity, these companies provide various financial services involving currencies and crypto assets, Tonchev explained. The Nexo group use their own cryptocurrency on sale as limited securities.

Following an analysis and summary of the information from the check, the SANS referred the matter to the prosecution service. A prosecutorial check was launched and then pretrial proceedings to be conducted by the National Investigation Service.

Tonchev said that the analysis of the bank accounts found debit and credit turnovers in particularly big amounts and transfers to interbank accounts of Bulgarian companies and companies in Nexo's group. A large part of the financial resources received in these accounts were later transferred to another company linked to a natural person on Nexo's management and used for the purchase of many properties. Such properties were purchased in business buildings in Sofia and tourist destinations in Bulgaria. Many checks were conducted, including public resources were found, based on which the actual owners were established, as well as the activity and capital of the companies in Nexo's group in Switzerland, the United States, the UK, Estonia, and other countries. 

The coordination and information exchange with foreign partner services led to data confirming the public information about violations committed by a company in Nexo's group, Tonchev went on to say. The observing prosecutor decided on search and seizure activities and joint actions between the SANS, the National Investigation Service, and the Interior Ministry, which were carried out on January 12. Charges were brought against four persons, two of which were released on bail and the other were put on the wanted list. 

At the moment, the SANS continues implementing the actions it has been tasked with by the prosecution service under the pretrial proceedings, Tonchev said.