Nexo to pay $45 million to settle peace with SEC

Black crypto series – For several months now, Nexo faces allegations of Securities and Exchange Commission. Accused of failure to disclose the risks associated with his service to gain and violation of securities regulations, the SEC proposes a settlement of 45 million dollars to end his investigation…and save Nexo from a costly lawsuit.

45 million dollars: the price of peace with the SEC

According to the available information, the DRY launched its accusations against Nexo and claimed that the exchange had been selling cryptocurrencies without considering the famous securities law. In other words, the crypto platform allegedly violated securities regulations related to its Earn service.

Thus, in a statement dated January 19, the SEC explains that the exchange is fined 45 million dollars. $22.5 million will go to DRY And another $22.5 million will go to state regulators, the NASAAA (the administrators of North American securities). Moreover, Link it will also have to discontinue its Earn service in the US, which it has already done.

“We accused Nexo of failing to register its retail cryptocurrency lending product before offering it to the public, circumventing essential disclosure requirements designed to protect investors (…) Compliance with our proven public policies is not an option When crypto firms 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 discontinuing its unregistered lending product for all US investors.”

Gary Gensler, chairman of the SEC – Source: SEC

>> Want to trade Bitcoin without spending a fortune? AscendEX opens its arms to you (commercial link) <

Nexo: the desire to collaborate with the regulation

For its part, in a thread of 9 tweets, Nexo explains its willingness to positively conclude this agreement with the SEC, to grow, and invites the regulation to quickly bring a regulatory framework for disruptive technologies like cryptocurrencies.

“As our co-founder said, “we are confident that a clearer regulatory landscape will soon emerge and that companies like Nexo will be able to offer products that create value in the United States in a compliant manner.” (…) The Nexo Philosophy to build a robust and sustainable business model has once again been uncompromising. We will continue to uphold the highest standards of compliance and responsibly grow the digital asset economy, for you.”

Nexo Thread – Source: Chirping

Nexo’s problems with regulation are not recent. Also, it’s not just about the United States. Indeed, the cryptocurrency platform has also been accused of fraud and organized crime by the Bulgarian authorities. These are then 158 million dollars who left the platform in less than 24 hours after vigorous searches by the authorities of the premises and apartments of some employees. In a haze of suspicion, Nexo denies allegations of Bulgarian regulation.

Despite regulatory requirements, your trust in Bitcoin is unshakable! Register on AscendEX. Take advantage of the 10% reduction on trading commissions (commercial link, see conditions on the site).

Leave a Comment