Nexo, a cryptocurrency lender, has agreed to pay $45 million to the U.S. Securities and Exchange Commission (SEC) and a number of state regulators. Nexo claims that after this settlement, all multi-year-long investigations into Nexo will be closed.
According to the SEC, the Earn Interest Product (EIP), an interest-earning product that enables investors to earn interest on deposited cryptocurrency assets, was introduced by Nexo around June 2020. The EIP is a security, and the offer and sale of the EIP did not meet the requirements for an exemption from SEC registration, according to the U.S. regulator.
Nexo is required to pay the SEC $22.5 million in addition to several state regulators will receive $22.5 million. Nexo made the announcement that it had reached a settlement with the United States on January 19, 2023.
Gary Gensler, the chairman of the SEC, provided a different explanation of the settlement. We accused Nexo of skipping crucial disclosure requirements meant to safeguard investors by failing to register its retail cryptocurrency lending product before making it available to the general public, according to Gensler.
Antoni Trenchev, one of the people who started Nexo, said that the company is “pleased with this unified resolution,” which “puts an end to all rumors about Nexo’s relations with the U.S.”
