The US Securities and Exchange Commission (SEC) accused Nexo of failing to register one of its products with its services. As a result, the cryptocurrency lending firm agreed to pay $45 million from various regulators, including the SEC.
Nexo disburses 45 million dollars to the American financial police
The Securities and Exchange Commission (SEC) seems to have taken a very close interest in crypto companies since the beginning of 2023. After investigating Digital Currency Group (DCG), then Genesis and Gemini, the finance guard declared, via a press release, that Nexo violated investor protection laws.
The SEC refers to the “Earn Interest Product” (EIP) offered by Nexo, a tool that allows investors to deposit their cryptocurrencies on the platform in exchange for attractive interest. According to the document, the EIP has security status in the United States, and must then be filed with the SEC. A rule that would not have been respected by the cryptocurrency lender.
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Thereby, Nexo agreed to pay a fine of $22.5 million with the SEC and terminate its “Earn Interest Product” offering on US soil. In parallel, the cryptocurrency lender paid the exact same amount to other regulators for the same reasons.
An initiative that aims, according to the president of the SEC Gary Genslerfor investor protection:
“Adhering to our time-tested public policies is not an option. When cryptocurrency companies fail to comply, we will continue to follow the facts and the law to hold them accountable. In this case, among other actions, Nexo is ending its unregistered lending product to all US investors. »
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Nexo faces some international setbacks
Nexo, who has neither denied nor admitted the facts of which he is accused here, could very well pay this fine just to leave the United States in peace. Indeed, in early last December, the cryptocurrency lender announced that it was ending its operations on American soil due to a ” lack of regulatory clarity ».
The company went on to say that it has made numerous efforts to keep its services in the best possible condition, in particular by having conducted numerous and lengthy talks with local authorities.
Outside the US, Nexo recently visited its offices by the Bulgarian police in Sofia on suspicion of money laundering and other tax crimes. A large-scale operation, which has mobilized no less than 300 police officers. On her side, the company has denied those allegations and continues to make every effort to cooperate with the authorities where it is located.
Finally, in a deed filed on January 12, Nexo has filed a lawsuit against the Cayman Islands Monetary Authority (CIMA), because the latter refused its registration application allowing it to access the status of virtual asset service provider.
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Source: SEC press release
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