Nexo agrees to pay fines of $ 45 million in US authorities

Nexo agrees to pay fines of $ 45 million in US authorities

In September, the California DFPI and other US regulatory authorities Nexo had already instructed to refrain from offering Earn Interest Products (EIP) that had the form of crypto-asset-lending accounts in the event of the company.

At the time of the indictment, Nexo had already stopped offering the accounts for US investors.

US investors could continue to use the function by deciding on the automatic extension of existing accounts.

collaboration with authorities

Four months later, both the SEC and the North American Securities Administrators Association (NASAA) announced that their lawsuits were concluded against the lender. As a result of the investigation, Nexo voluntarily agreed to pay fines of $ 45 million.

The crypto platform refused to confirm or deny the findings of the regulatory authorities-nevertheless a spokesman for the SEC said that the punishment imposed against the company took into account the cooperation and willingness of Nexo to work with the regulatory authorities without restriction.

In addition, the chairman of the SEC, Gary Gensler, said that Nexo was not for the operation of an EIP, but for the failure to register it properly.

"We have accused Nexo of not registering his crypto-lending product for private customers before it was offered to the public and thus bypassing significant disclosure obligations to protect investors. Compliance with our proven public guidelines is no choice. Where crypto companies do not adhere to it, we will continue to follow the facts and the law to be responsible for. Nexo, among other things, has his non-registered loan product for all US investors. ”

Several fines are divided between the supervisory authorities

The penalties of $ 45 million are paid to several companies in at least 18 separate fines. The largest accounts for half of the total and is paid directly to the Sec.

The remaining $ 22.5 million are paid out to at least 17 separate state securities supervisory authorities, which are coordinated by NASAA. The exact conditions are unnamed; However, we can suspect that California is one of them due to their early participation.

The agreement was also confirmed by Nexo in a 9-piece thread on Twitter.

nexo has achieved a final resolution with the US Securities and Exchange Commission (SEC), the North American Securities Administrator Association (NASAA), consisting of all 50 US states and 3 territories, and the Attorney General of New York. t.co/modjbpsodv

-nexo (@nexo) January 2023

In the thread, the spokesman for Nexo once again explained that there was no allegations of fraud or anything else apart from a non -registered securities offer. The spokesman also confirmed that the company is happy about the constructive dialogue with the authorities and that they will continue to grow and improve on the basis of the feedback received.

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