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Nexo's native token pared earlier gains and fell as much as 2.5% after the news about the Bulgarian stock, according to CoinMarketCap data cited by Bloomberg.

As reported by the agency, the Sofia office of cryptolender Nexo was searched by Bulgarian police on Thursday as part of an investigation into suspected money laundering and tax crimes.

More than 300 police officers, prosecutors and national security agents are involved in the operation, Siika Mileva, spokesperson for the Prosecutor General of Bulgaria, told reporters in Sofia.

The Nexo case: Four defendants, paintings by Salvador Dali, Picasso and Matisse found during searches

Authorities are investigating the London-based company Nexo on suspicion of money laundering, tax crimes and crimes related to unlicensed banking activities, she said, adding that for now the investigation is limited to Bulgaria.

The investigation in Bulgaria comes about four months after regulators in eight US states issued shutdown orders to Nexo, alleging the company offered interest-earning accounts without registering the investment products as securities, Bloomberg reports.

Antoni Trenchev with a comment on the action against Nexo

As reported by the agency, Nexo said last month that it plans to phase out its products and services in the US, citing a "lack of regulatory clarity".

Police searched a total of 15 addresses associated with the company, Mileva said.

Antoni Trenchev, co-founder of Nexo and a former Bulgarian MP, told Bloomberg: "This is a coordinated attack, as can be seen from the absurd claims."

The company's global platforms have generated a total turnover of 94 billion dollars in the last five years, Mileva also announced.