Crypto Lender Nexo Agrees With The SEC For This Ridiculous Amount… Details Inside

  • Nexo’s settlement with the Securities and Exchange Commission amounted to millions.
  • The SEC expected “compliance” from all firms trading in the securities, according to the SEC’s enforcement division director.

The Securities and Exchange Commission (SEC) charged Nexo with selling unregistered securities on January 19, 2023. The company reportedly did not register with the SEC before offering Earn Interest, a crypto loan product, to users.

Nexo agreed to settle with the SEC by terminating the interest program and paying a $22.5 million fine. This was in addition to a $22.5 million settlement with government regulators. Thus, Nexo has to pay a lump sum of $45 million.

Earlier this month, Bulgarian authorities claimed they had no evidence that Nexo customers were using the platform for illegal activities such as money laundering, tax evasion and terrorist financing. However, Nexo denied these allegations.

Additionally, Gurbir S.Grewal, director of the SEC’s Division of Enforcement, said:

“If you offer or sell products that constitute securities under well-established laws and legal precedents, then no matter what you call those products, you are subject to those laws and we expect compliance.”

Grewal further stated that the SEC will continue to hold crypto companies that trade in securities accountable under the law.

How to target the Nexo SEC

According to the Securities and Exchange Commission, the offering and sale of a Nexo Earn Interest product did not qualify for an SEC filing exemption, which means Nexo was required to register its offering and sale, but did not.

Nexo launched its Earn Interest product in June 2020. However, several US states, including California, Vermont, Oklahoma, South Carolina, Kentucky, and Maryland, have filed cease and desist orders against the company. As of September 2022, the Nexo Earn Interest is considered an unregistered security.

In December 2022, the company’s co-founder, Anthony Trenchev, announced the end of its US operations. The company made this decision after hitting an impasse with regulators.

Trinci said after the settlement,

“We are pleased with this consolidated decision that unequivocally puts an end to all speculation surrounding Nexo’s relations with the United States.”

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