- Nexo reached a $45 million settlement with US regulators, including the SEC.
- The crypto lender allegedly offered unregistered securities via its Earn Interest Product.
- Nexo will pay $22.5 to state regulators and the rest to the SEC, with this expected in the next 12 months.
Nexo, a Cayman Islands corporation founded in 2018 and a leading crypto lender, will pay $45 million as settlement with the US Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA).
NASAA announced the settlement late Thursday, noting Nexo had agreed to pay the penalties following the outcome of a comprehensive investigation into an interest product the crypto platform allegedly offered to US customers.
Nexo settlement closes multi-year investigation
According to the press release announcing the settlement, the charges related to Nexo’s offering and sale of alleged unregistered securities via its Earned Interest Product (EIP). The regulatory watchdog noted 17 US state securities regulators had agreed to the reported settlement, with more set to accept it.
“This settlement recognises the important work of state securities regulators and the SEC in making sure that those who are investing their hard-earned money have all the information necessary to understand the risks and rewards of their decisions,” said Charlie Clark, Director, Washington Department of Financial Institutions Agency.
Nexo commented on the landmark settlement via a blog release, confirming it had been reached on a “no-admit-no-deny basis.” This closes a multi-year probe into Nexo’s offerings, particularly its interest bearing accounts.
According to Nexo, the regulators’ inquiries over the past year or so showed the company had not engaged in any fraud.
Nexo believes that the company has been recognized for what it truly is – a pioneer, like Uber and Airbnb, providing disruptive solutions in a fast-paced environment.
— Nexo (@Nexo) January 19, 2023
“We are content with this unified resolution which unequivocally puts an end to all speculations around Nexo’s relations to the United States. We can now focus on what we do best – build seamless financial solutions for our worldwide audience,” said Nexo co-founder Antoni Trenchev.
The crypto lender will pay $22.5 million to state securities regulators and the rest to the SEC, with the payments made over the next 12 months. Notably. Nexo was in the process of a phased out exit from the United States market.
Nexo’s native token NEXO rose in the aftermath of the announcement, and was changing hands around $0.84 on Friday afternoon. The NEXO price was up by more than 17% in the past 24 hours as at 12:10 pm ET
Credit: Source link