Crypto lender Nexo Capital has agreed to pay US$45 million in a settlement with the U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA), over allegations of failing to register its lending product, according to NASAA.
- Nexo settled the charges on a “no-admit-no-deny basis,” agreeing to pay half of the US$45 million to the SEC and the other half to a group of states that sued the crypto lender.
- The SEC alleged that Nexo’s Earn Interest Product was an unregistered securities offering that should have been registered with the commission before being publicly sold to investors.
- Nexo agreed to stop offering its earn program to investors in the U.S. and started phasing out the product in December.
- “We are confident that a clearer regulatory landscape will emerge soon, and companies like Nexo will be able to offer value-creating products in the United States in a compliant manner,” said Nexo co-founder Antoni Trenchev in a statement.
- The crypto lender said the settlement “closes all multi-year-long inquiries into Nexo,” and that the company will “keep upholding the highest compliance standards and growing the digital asset economy in a responsible way.”