Prosecutors are reported to have charged four people less than 48 hours after raiding the offices of its digital currency borrower Nexo in Sofia, Bulgaria.

According to Bloomberg News on January 13, authorities have charged four Bulgarian people with setting up organized crime groups that may include themed activities related to money laundering and unlicensed financial institutions. It is reported that as part of the investigation, the public security bureau of the host country cracked some property, including digital currency, cash and mobile phones.

After the January 12 raid, Nexo described the prosecutor's move as a "kick first, ask later" approach. According to reports, the company plans to sue for damage caused by police actions, accusing the authorities of not providing search warrants or identities to Nexo employees.

"We have been working with relevant authorities and regulators," the credit company said.

George Naydenov, a front-end engineer in Nexo Sofia's office, said on LinkedIn:

Naturally, I am grateful to the Bulgarian Prosecutor's Office for trying to take the jobs of more than 600 Nexo people, including myself, in the weakest and saddest way.

It is not clear at this stage who was involved in the arrest and who is likely to play a role in the Nexo. The credit company has about 600 employees in Sofia.

Nexo, founded in 2018, operates a wealth management platform that allows users to invest and lend with locks as collateral. The company has service offices in the United States, Bulgaria and Germany, but it is reported not to provide assistance to Bulgarian households because of potential problems with local governments. Last December, Nexo announced plans to phase out its services in the United States because of the lack of a clear regulatory path forward.