8.4 C
Brussels
Monday, November 11, 2024
EconomyNexo's claim against Bulgaria turned out to be over 3 billion dollars

Nexo’s claim against Bulgaria turned out to be over 3 billion dollars

DISCLAIMER: Information and opinions reproduced in the articles are the ones of those stating them and it is their own responsibility. Publication in The European Times does not automatically means endorsement of the view, but the right to express it.

DISCLAIMER TRANSLATIONS: All articles in this site are published in English. The translated versions are done through an automated process known as neural translations. If in doubt, always refer to the original article. Thank you for understanding.

Petar Gramatikov
Petar Gramatikovhttps://europeantimes.news
Dr. Petar Gramatikov is the Editor in Chief and Director of The European Times. He is a member of the Union of Bulgarian Reporters. Dr. Gramatikov has more than 20 years of Academic experience in different institutions for higher education in Bulgaria. He also examined lectures, related to theoretical problems involved in the application of international law in religious law where a special focus has been given to the legal framework of New Religious Movements, freedom of religion and self-determination, and State-Church relations for plural-ethnic states. In addition to his professional and academic experience, Dr. Gramatikov has more than 10 years Media experience where he hold a positions as Editor of a tourism quarterly periodical “Club Orpheus” magazine – “ORPHEUS CLUB Wellness” PLC, Plovdiv; Consultant and author of religious lectures for the specialized rubric for deaf people at the Bulgarian National Television and has been Accredited as a journalist from “Help the Needy” Public Newspaper at the United Nations Office in Geneva, Switzerland.

The claim of “NEXO” against Bulgaria, the Ministry of Finance and the Prosecutor’s Office turned out to be over 3 billion dollars. This is clear from the digital asset company’s announcement to the media at the end of January.

“The size of the arbitration claim is determined by the significant material and reputational damages resulting from the actions of the government authorities during the now closed, oppressive investigation against the company, its employees and managers. As expected, the accusations proved to be untenable, and the pre-trial proceedings found their logical end due to lack of crimes”, Nexo wrote.

The claim was filed with the secretariat of the International Center for Settlement of Investment Disputes (ICSID) at the World Bank in Washington, according to international agreements on the protection of investments. Nexo’s interests before the tribunal will be represented by the prestigious American law firm Pillsbury Winthrop Shaw Pittman LLP, the company reports.

On December 21, 2023, less than a year after the spectacular, ostentatious action and subsequent administrative and institutional arbitrariness, all charges were dropped. The Sofia City Prosecutor’s Office concluded that “no crimes were committed” and terminated the criminal proceedings against the managers of “Nexo” – Kosta Kanchev, Antoni Trenchev, Kalin Metodiev and Trayan Nikolov, thereby categorically exonerating them, the company recalls.

“Having studied the case in depth, we believe in the strength and future success of Nexo’s claim,” Matthew Oresman, managing partner of Pillsbury LLP’s London office, was quoted as saying by the company. Deborah Ruff, head of arbitration in the international office, added: “We look forward to representing our clients in the next phase of this fight for justice.”

The damage sustained is also described. The company writes: “The direct consequences of the attack by the state authorities, accompanied by a serious media campaign against the company and the mass circulation of false statements caused colossal damage to the activity and international reputation of Nexo. The company’s investments in Bulgaria suffered large losses, and significant business opportunities on a global scale lost:

– Nexo’s joint work with three of the largest American investment banks on the initial public offering of the company’s shares on a landmark stock exchange in the United States has been terminated. The valuation of Nexo given by these banks at the time was between US$8 billion and US$12 billion.

– The signing of a long-term cooperation of Nexo with one of the most popular European football clubs with over 330 million supporters worldwide was foiled. The goal of the collaboration was the creation of an exclusive, joint, innovative financial product providing access to the potential of digital assets for the millions of fans of the football giant.

“The tarnished name and reputation of Nexo and its employees in front of local and international authorities, partners and institutions through the circulation of already proven false claims led to the loss of a series of business opportunities, potential revenues and a multi-billion drop in the value of the company”.

“The time has come to demand justice and compensation for the huge reputational and financial damage caused,” the company wrote.

Nexo intends to donate up to 20% of the compensation received to the most needy and neglected sectors in the country – children’s health care and education. “The main priority will be support for the construction of much-needed children’s hospitals and departments in Bulgaria, as well as various initiatives to increase the competitiveness of Sofia University “St. Kliment Ohridski” on the global educational scene,” they add.

Let’s remind that in spring 2022 the Nexo team in Bulgaria considered it their human duty to take concrete actions in support of Ukrainian refugees – women, children and families – who have found refuge in the country, as well as to support those affected who have chosen to stay on the territory of Ukraine.

Nexo donated $350,000 or BGN 620,000 to help the victims in three main directions: 1. Humanitarian aid to Ukraine – $135,000; 2. Helping Ukrainian refugees in Bulgaria – $140,000; 3. Support for women and children, Ukrainian refugees, in Bulgaria – $75,000.

Nexo works with a number of local organizations actively involved in providing humanitarian, medical, legal and social assistance, vital supplies of food and clean drinking water, providing emergency shelter to those in need, protecting children and vulnerable groups, and helping for the safe passage of Ukrainian citizens across the border. The provided financial support also supports initiatives to build day care centers for Ukrainian refugee children, to provide educational resources and support for mothers with children with disabilities or developmental difficulties, including long-term support for mothers of children with disabilities or developmental difficulties, Ukrainian refugees on the territory of Bulgaria: donation of $50,000 to the For Our Children Foundation; and support for women and children, Ukrainian refugees, on the territory of Bulgaria: donation of $25,000 to the Bulgarian Women’s Fund.

- Advertisement -

More from the author

- EXCLUSIVE CONTENT -spot_img
- Advertisement -
- Advertisement -
- Advertisement -spot_img
- Advertisement -

Must read

Latest articles

- Advertisement -