{"id":16668,"date":"2023-01-20T09:12:34","date_gmt":"2023-01-20T09:12:34","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/nexo-agrees-to-pay-45-million-to-sec-and-state-regulators-for-unregistered-offering-of-earn-interest-product-bitcoin-news\/"},"modified":"2023-01-20T09:12:34","modified_gmt":"2023-01-20T09:12:34","slug":"nexo-agrees-to-pay-45-million-to-sec-and-state-regulators-for-unregistered-offering-of-earn-interest-product-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/nexo-agrees-to-pay-45-million-to-sec-and-state-regulators-for-unregistered-offering-of-earn-interest-product-bitcoin-news\/","title":{"rendered":"Nexo Agrees to Pay $45 Million to SEC and State Regulators for Unregistered Offering of Earn Interest Product \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The cryptocurrency lender, Nexo, has agreed to pay $45 million to the U.S. Securities and Exchange Commission (SEC) and several state regulators after charges were levied against the firm for failing to register the company\u2019s Earn Interest Product (EIP). Nexo detailed that the settlements are on a \u201cno admit, no deny\u201d basis and that the arrangement \u201ccloses all multi-year-long inquiries into Nexo.\u201d<\/strong><\/p>\n

Nexo Pays $22.5 Million to SEC, $22.5 Million to Several State Regulators for EIP Offering<\/h2>\n

On Jan. 19, 2023, Nexo announced that it has agreed to settle with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA) and several state regulators, including the Office of the New York Attorney General, over an unregistered offering.<\/p>\n

According to the SEC, around June 2020, Nexo started to offer the company\u2019s Earn Interest Product (EIP), an interest-earning product that allows investors to earn interest on deposited crypto assets. The U.S. regulator said<\/a>, \u201cthe EIP is a security and that the offer and sale of the EIP did not qualify for an exemption from SEC registration.\u201d<\/p>\n

Nexo\u2019s co-founder, Kosta Kantchev, responded to the settlement in a statement sent to Bitcoin.com News. \u201cWe 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, and the U.S. will further solidify its position as the world\u2019s engine of innovation,\u201d Kantchev said. SEC chairman Gary Gensler described the settlement in a different manner.<\/p>\n

\u201cWe 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,\u201d Gensler said. \u201cCompliance with our time-tested public policies isn\u2019t a choice. Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable. In this case, among other actions, Nexo is ceasing its unregistered lending product as to all U.S. investors.\u201d<\/p>\n

Nexo co-founder Antoni Trenchev thanked the company\u2019s legal team from Schulte Roth and Zabel LLP and said the Office of the New York Attorney General helped Nexo secure this \u201cmost favorable\u201d outcome. \u201cWe are content with this unified resolution which unequivocally puts an end to all speculations around Nexo\u2019s relations to the United States. We can now focus on what we do best \u2013 build seamless financial solutions for our worldwide audience,\u201d Trenchev detailed in a statement on Thursday.<\/p>\n

Nexo\u2019s settlement with U.S. regulators follows the recent investigation<\/a> into Nexo\u2019s dealings initiated by Bulgarian law enforcement officials. The crypto lender, however, vehemently denies<\/a> the allegations stemming from Bulgaria\u2019s attorney general.<\/p>\n

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\nTags in this story
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Antoni Trenchev<\/a>, Bulgaria\u2019s attorney general<\/a>, Bulgarian law enforcement<\/a>, Compliance<\/a>, crypto assets<\/a>, crypto companies<\/a>, cryptocurrency lender<\/a>, Earn Interest Product<\/a>, EIP<\/a>, Gary Gensler<\/a>, interest-earning product<\/a>, investor protection<\/a>, Kosta Kantchev<\/a>, legal team<\/a>, Nexo<\/a>, Nexo SEC<\/a>, NYAG<\/a>, Office of the New York Attorney General<\/a>, public disclosure<\/a>, Regulatory Compliance<\/a>, regulatory landscape<\/a>, Schulte Roth and Zabel LLP<\/a>, SEC<\/a>, Settlement<\/a>, state regulators<\/a>, unified resolution<\/a>, unregistered offering<\/a><\/div>\n<\/div>\n

What do you think about the outcome of the Nexo settlement and its impact on the regulatory landscape for crypto companies in the United States? Share your thoughts about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: David Tran Photo \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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