Crypto lender Nexo to pay US$45 mln to settle U.S. SEC charges

Zoltan Vardai

1 year ago

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.

Fast facts

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.”