Popular Crypto lending platform Nexo decided to settle its case with the US Securities regulatory body with a $45M penalty.
Nexo is a popular Crypto lending platform in the Crypto sector. In 2022 many Crypto lending platforms collapsed badly but it was Nexo, which was standing strongly against all the challenges with its fair operations. Also due to unclear regulatory policies in the US, Nexo decided to leave the US market.
On 19 Jan 2023, An announcement came from the United States Securities and Exchange Commission (SEC) and confirmed that Nexo will pay a $22.5 million fine to the agency over the charges of unregistered offerings and sale of the EIP to U.S. investors.
Similar charges were also raised by the other US state agencies against Nexo and they will also receive a total of $22.5 million separately from Nexo as a fine.
Allegedly Nexo promoted its high return & rewards product to the US Investors via social media promotions, where Nexo claimed to give up to 36% returns.
Gary Gensler, chairman of the US SEC agency, said that the Nexo team cooperated with the agency perfectly, which was the main reason to accept the settlement plan of the case.
SEC boss said:
“We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors.”
On 20 Jan 2023, Nexo also shared this news on Twitter and noted that its fight with the SEC agency reached the final phase, where Nexo will settle the whole matter.
The Nexo team also confirmed that the company neither admitted nor denied the allegation of unregistered securities offerings and the whole issue was associated with the Nexo EIP product.
According to Nexo, this decision closed a multi-year investigation & fight with the US authorities. In short, it was a good decision for the company to maintain its reputation & focus on business expansion.
Nexo co-founder said:
“We are confident that a clearer regulatory landscape will emerge soon, and companies like Nexo will be able to offer value-creating products in the United States in a compliant manner.”
Further, the Nexo team said that Crypto 2022 was a challenging year but still with better & sustainable management, Nexo did its best to provide services with full stability.