- Nexo has reached a $45 million settlement with US regulators, including the Securities and Exchange Commission.
- The cryptocurrency lender allegedly offered unregistered securities via the interest earned product.
- Nexo will pay $22.5 to state regulators and the remainder to the Securities and Exchange Commission, which is expected to happen in the next 12 months.
Nexo, a Cayman Islands company incorporated in 2018 and a leading cryptocurrency lender, will pay $45 million in a settlement with the US Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASA).
NASA announced the settlement late Thursday, noting that Nexo had agreed to pay the fines following the outcome of a thorough investigation into an interest product that the crypto platform allegedly provided to US customers.
The Nexo settlement shuts down the investigation for several years
According to the press release announcing the settlement, the fees related to Nexo’s offering and alleged sale of unregistered securities via an Earned Interest Product (EIP). The watchdog noted that 17 US securities regulators had approved the reported settlement, with more poised to accept it.
“tHis settlement recognizes the important work of state securities regulators and the Securities and Exchange Commission in ensuring that those investing their hard-earned money have all the information necessary to understand the risks and rewards of their decisions.said Charlie Clark, director of the Washington Financial Institutions Management Agency.
Nexo commented on the historic settlement via a blog post, confirming that it was reached in “The basis of non-acceptance and non-rejection. This closes a multi-year investigation into Nexo’s offerings, particularly interest-bearing accounts.
According to Nexo, inquiries from regulators over the past year or so have shown that the company has not engaged in any fraud.
Nexo believes the company is being recognized for what it is – as a leader, like Uber and Airbnb, providing disruptive solutions in a fast-paced environment.
4/9
– Nexo (@nexo) January 19, 2023
“We are satisfied with this consolidated decision that unequivocally puts an end to all speculation surrounding Nexo’s relations with the United States. We can now focus on what we do best – building seamless financial solutions for our audiences around the worldsaid Nexo co-founder Anthony Trenchev.
The cryptocurrency lender will pay $22.5 million to state securities regulators and the rest to the Securities and Exchange Commission, with payments to be made over the next 12 months. significantly. Nexo was in the process of phasing out the US market.
NEXO native token Nexo rallied in the wake of the announcement, and was trading around $0.84 on Friday afternoon. NEXO price is up more than 17% in the past 24 hours at 12:10 PM ET