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Bulgaria’s oldest football club adopts Bitcoin and Lightning, joins Nostr

October 31, 2023 Coin Telegraph

Bulgaria

Football meets finance: Bitcoin payments integration arrives at top-flight Bulgarian club, Botev Plovdiv FC.

Bitcoin (BTC) has netted another adoption goal. Botev Plovdiv FC, Bulgaria’s oldest football club, has adopted Bitcoin and Lightning Network payments, as well as joining decentralized protocol, Nostr .

*Plovdiv’s stadium accommodates 18,000 people. Source: Manolov*

Effective immediately, fans can utilize Bitcoin for peer-to-peer payments at Botev Plovdiv FC’s fan shops and stands during matches in the top-flight Bulgarian Parva Liga. The club also has plans in the pipeline to extend Bitcoin payments for ticketing and its online store.

Anton Zingarevich, the president of the 111-year-old football club, expressed enthusiasm for the move, highlighting the potential of the Lightning Network. He stated in a press release:

“We foresee Bitcoin payments becoming as ubiquitous as the internet in our daily lives. This integration not only aligns with our vision but also offers our fans and stakeholders unparalleled convenience.“

The initiative became a reality through a partnership with BTCPay Server, a Bitcoin payment processor known for its open-source architecture, secure infrastructure and low merchant fees. The payment hardware was handled by CryptoDesk.bg, in collaboration with Bitcoinize.com, who provided the point-of-sale devices.

*The Bitcoin NFC enabled point-of-sale device in the changing room. Source: Manolov*

Nicolas Dorier, founder of BTCPay Server, emphasized the importance of local Bitcoin adoption, stating it is committed to supporting transformative endeavors such as the work at Plovdiv.

George Manolov, Bitcoin director at Botev Plovdiv FC, explained that “Bitcoin offers a universe of technological, social and financial opportunities.”

“At Botev, we’re thrilled to lead these innovations into sports, harnessing their transformative energy to elevate our club to unprecedented heights. As Bulgaria’s oldest football club, anticipate pioneering products and initiatives from us.“

In addition to embracing Bitcoin, Botev Plovdiv FC has revamped its online presence. The club’s official website has been updated, English social media channels have been brought up to speed, and the club has created an account on Nostr — a decentralized protocol that offers censorship-resistant social media.

The move to embrace Bitcoin and decentralized technologies is similar to that of Real Bedford, a United Kingdom-based football club, which was the world’s first football club to adopt Bitcoin. Peter McCormack, chairman of Real Bedford, shared his thoughts on the news from Bulgaria:

“It is so cool to see more football clubs adopt the Bitcoin cheat code. Not only will it bring more success to their club, but it will also widen the net for Bitcoin awareness.”

McCormack has integrated Bitcoin at Real Bedford since 2021, and he also spoke with Plovdiv before its move to adopt Bitcoin. According to McCormack, the unique characteristics of Bitcoin act as a cheat code for life. He is hosting a conference called “Cheat Code” in Bedford in Spring 2024.

McCormack told Cointelegraph, “There is a plague of financial irresponsibility in football, so clubs adopting a low-time preference Bitcoin standard as part of their strategy are building their club with solid foundations.”

“I expect we will continue to see not just other football clubs but all types of sports teams adopt the cheat code.“

Meanwhile, football fans attending Plovdiv’s home game against second in the league Lokomotiv Plovdiv will be able to pay using Bitcoin and the Lightning Network. The team made the announcement on Bitcoin white paper day to mark the day and highlight its support for Bitcoin.

Magazine: Peter McCormack’s Real Bedford Football Club puts Bitcoin on the map

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Law Decoded, Jan. 9-16: Gemini, Bithumb, Nexo are fresh targets for regulation and prosecution

January 16, 2023 Coin Telegraph

Binance

While the FTX saga continues to make headlines, last week brought a plethora of new troubles for crypto companies in the United States, Europe and Asia.

The United States Securities and Exchange Commission charged cryptocurrency lending firm Genesis Global Capital and crypto exchange Gemini with selling unregistered securities through Gemini’s “Earn” program.

The Commodity Futures Trading Commission started the process of getting a default judgment in its case against Ooki DAO after the decentralized autonomous organization missed the deadline to respond to the lawsuit. It also filed suit against digital artist Avraham Eisenberg and charged him with two counts of market manipulation in connection with an exploit of the decentralized finance platform, Mango Markets.

In South Korea, tax agents raided the Seoul headquarters of cryptocurrency exchange Bithumb, looking for evidence of possible tax evasion. This development comes after former Bitchumb chair Lee Jung-Hoon was acquitted of $70 million in fraud charges. In the Bulgarian capital of Sofia, the offices of crypto lending firm Nexo were raided by police. They targeted a large-scale money laundering scheme and violations of Russia’s international sanctions.

While the FTX saga continues to make headlines, last week brought a plethora of new troubles for crypto companies in the United States, Europe and Asia.

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There’s still a place for good news. Bankrupt crypto lender Voyager Digital has finally received initial court approval for its proposal to sell its assets to Binance.US for $1.02 billion. The approval comes amid a national security probe concerning Binance.US that Voyager seeks to speed up. The Voyager Official Committee of Unsecured Creditors — a body representing creditors with no security interests in Voyager — supported the transaction in its current form, noting the deal would result in greater recoveries for creditors than if Voyager liquidated its holdings itself.

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In September 2022, the Public Service Commission of New York authorized the conversion of the Fortistar North power plant into a crypto-mining site. Now it faces a lawsuit, with the Clean Air Coalition of Western New York and the Sierra Club claiming that the Fortistar plant only operated during periods of high demand for electricity, such as extreme weather conditions. However, as a crypto mining plant, the site would run 24 hours a day, generating up to 3,000% more greenhouse gas emissions.

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As the investigation into FTX continues, the crypto exchange’s former engineering chief, Nishad Singh, followed former FTX and Alameda Research executives Gary Wang and Caroline Ellison by reportedly meeting with federal prosecutors to cut a deal.

The former president of FTX US, Brett Harrison, has lashed out at Sam Bankman-Fried for manipulating and threatening colleagues who proposed solutions to reorganize FTX US’ management structure. Despite recalling Bankman-Fried to be a “sensitive and intellectually curious person” at first, Harrison said he saw “total insecurity and intransigence” in Bankman-Fried when confronted with conflict, particularly when Harrison suggested FTX US establish separate branches for its executive, developer and legal teams.

Meanwhile, FTX was approved to sell some of its assets to aid efforts to repay creditors. Judge John Dorsey has approved the sale of four key units of FTX, including the derivatives platform LedgerX, the stock-trading platform Embed and its regional arms, FTX Japan and FTX Europe.

Nexo investigation is not political, says Bulgarian prosecutors

January 15, 2023 Coin Telegraph

Bulgaria

A spokesperson for Bulgaria’s chief prosecutors denied claims that the investigation was prompted by the company's political donations.

Siika Mileva, a spokesperson for Bulgaria’s chief prosecutors, denied political motivations behind the probe against the crypto lending firm Nexo, according to local reports. The comments were made in response to claims that the investigation had a connection to the company's political donations.

Almost all cases where a prosecution launches an investigation that affects someone's financial interests result in attacks and accusations, Mileva said, adding that "it has become a national sport to attack the institutions."

On Jan. 12, a group of prosecutors, investigators and foreign agents searched the company’s offices in the Bulgarian capital city of Sofia. The operation targeted a large-scale money laundering scheme as well as violations of Russia's international sanctions

In less than 48 hours after Nexo’s offices were raided, four people were charged with money laundering, tax crimes, computer fraud, and unlicensed banking. Two individuals were released on bail worth nearly $550,000. The two others remain unfound in Bulgaria and have been declared internationally wanted persons. It’s unclear whether the individuals had a connection with the crypto firm.

According to Mileva, transactions carried out by Nexo amounted to $94 billion in a period of five years. An organized criminal group operating in several countries since the beginning of 2018 has been under investigation, noted the spokesperson.

On Twitter, Nexo complained about the law enforcement raid and said it was preparing a lawsuit against for damages caused by the abrupt police interruption. The company classified the authorities approach as “kick first, ask questions later”.

According to the company, investigators did not provide a search warrant for hours, while inspectors never identified themselves to Nexo employees.

We are always cooperating with the relevant authorities and regulators, and we are hopeful that we will have some exciting news in the weeks to come. 7/
— Nexo (@Nexo) January 12, 2023

Nexo operates an investment platform where users can stake and borrow against crypto. Although it has offices in Bulgaria, the firm does not provide services to the country's residents due to potential regulatory issues. The company was founded in 2018 and has offices in the United Kingdom, Bulgaria and Switzerland.

In December 2022, Nexo announced it would phase out its United States operations due to a lack of clear regulatory cooperation with U.S. authorities.

Bulgarian authorities charge four individuals following raid on Nexo office: Report

January 13, 2023 Coin Telegraph

Bulgaria

Following the Jan. 12 raid on its Sofia offices, Nexo described prosecutors’ actions as a “kick first, ask questions later” approach.

Less than 48 hours after a raid on cryptocurrency lender Nexo’s offices in the Bulgarian capital of Sofia, prosecutors have reportedly charged four people.

According to a Jan. 13 report by Bloomberg, authorities charged four Bulgarian nationals with forming an organized crime group, which may have included activities related to money laundering and unlicensed banking. The country’s National Police Service reportedly seized a number of assets as part of the investigation, including cryptocurrency, cash, and computers.

Following the Jan. 12 raid, Nexo described prosecutors’ actions as a “kick first, ask questions later” approach. The company reportedly planned to file a lawsuit seeking compensation for damages caused by police actions, alleging authorities did not show a search warrant or identify themselves to Nexo employees.

“We are always cooperating with the relevant authorities and regulators,” said the lending firm.

George Naydenov, a frontend developer at Nexo’s Sofia office, said on LinkedIn:

“I thank the Bulgarian Prosecutor's Office for trying, of course, in the most incompetent and pathetic way to take away the work of over 600 people in Nexo including me.”

It’s unclear which individuals and what role they may have held at Nexo were involved in the arrests. The lending firm has roughly 600 employees in Sofia.

Founded in 2018, Nexo operates an investment platform allowing users to stake and borrow against crypto. The company has offices in the United Kingdom, Bulgaria, and Switzerland, but reportedly does not offer its services to Bulgarian residents due to potential issues with the local government. In December, Nexo announced that it planned to phase out its services in the United States, citing the lack of a clear regulatory-compliant path forward.

Nexo Bitcoin Withdrawals Surge Following Raid of Bulgarian Offices

January 13, 2023 Bitcoin.com

Crypto lender Nexo wants to sue Bulgaria after office raids

January 13, 2023 Coin Telegraph

Bulgaria

Nexo platform has reportedly experienced massive outflows amid the news on office raids and an ongoing investigation against the firm.

Troubled cryptocurrency firm Nexo is planning to sue the Bulgarian government in the aftermath of massive raids at the company’s offices in Sofia.

Nexo has complained about the actions of the law enforcement authorities in response to the investigation against the firm, the Bulgarian News Agency reported on Jan. 13.

The company is reportedly preparing to file a lawsuit against the authorities to seek compensation for damages caused by the abrupt police interruption. One report suggested that investigators did not provide a search warrant for hours, while inspectors had never identified themselves.

Nexo believes that the raids conducted in its offices yesterday were against the law and demonstrated “total incompetence of those conducting this shameful action.” Nexo also described the actions against the firm as the “local Bulgarian arbitrariness” which allegedly aimed to "destroy and loot a prosperous business.”

The firm also emphasized that Nexo doesn't offer any services for Bulgarian residents due to potential issues with the local government. The company also reiterated that it has been compliant with Anti-Money Laundering requirements as well as sanctions against Russia, in addition to cooperating with major crypto intelligence firms like Chainalysis.

The firm expressed confidence that it will win the lawsuit, which will provide Nexo with compensation for the damage caused by the investigation, stating:

“The compensations that Bulgaria will pay after the claims are filed and won by Nexo will be another record breaking amount of hundreds of millions, but, unfortunately, they will be at the expense of the Bulgarian taxpayer.”

Siyka Mileva, a spokesperson for Bulgaria’s chief prosecutors, said that the investigation against Nexo involved more than 300 police officers, prosecutors and national security agents. She also noted that the probe is currently limited to Bulgaria, with local police officers searching 15 addresses related to Nexo as of Jan. 12. Other reports indicated that some foreign agencies were also involved in the investigation.

*Siyka Mileva and Bulgaria's cybersecurity officer. Source: The Bulgarian News Agency*

Nexo’s statement came shortly after the company reportedly experienced massive outflows amid the investigation reports.

According to crypto analytics platform Arkham Intelligence, Nexo has seen “floods of outflows” since the news broke. Blockchain tracker Cielo Finance also reported on large withdrawals from Nexo, highlighting transactions with more than 200,000 USD Coin (USDC) stablecoin leaving the platform on Jan. 12.

Nexo offices reportedly raided by police in Bulgaria

January 12, 2023 Coin Telegraph

Bulgaria

The investigators have alleged that Nexo is involved in money laundering and violating global financial sanctions against Russia.

Troubled cryptocurrency lender Nexo is facing more pressure from regulators as its offices have been reportedly raided as part of an international investigation.

A group of prosecutors, investigators and foreign agents started searches of Nexo’s offices in the Bulgarian capital, the local news agency Standart reported on Jan. 12.

The operation was reportedly initiated a few months ago, targeting a large-scale financial criminal scheme allegedly involving money laundering and violations of international sanctions against Russia. Citing sources of the Bulgarian National Television, the report alleges Nexo’s involvement in the scheme.

The television also highlighted Nexo’s alleged ties with the government of Bulgaria, specifying that Nexo was co-founded by former parliament member Antoni Trenchev and Georgi Shulev, the son of former deputy prime minister Lydia Shuleva.

Nexo was quick to react to the latest news, taking to Twitter to assure the public that the company has been compliant with global crypto regulations and has enforced strict Anti-Money Laundering and Know Your Customer policies.

“Unfortunately, with the recent regulatory crackdown on crypto, some regulators have recently adopted the kick first, ask questions later approach. In corrupt countries, it is bordering with racketeering, but that too shall pass,” Nexo wrote.

Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/
— Nexo (@Nexo) January 12, 2023

Founded in 2018, Nexo operates a cryptocurrency investment platform, also allowing users to stake and borrow against crypto. The firm first encountered issues in the United States last year, with the California Department of Financial Protection & Innovation filing a desist and refrain order against Nexo regarding its interest service in September. Nexo eventually decided to gradually cease operations in the U.S. after failing to find a dialogue with local regulators.

Bulgaria

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Voyager and Binance.US deal given the green light