Due to Nexo Capital’s failure to register the offer and sale of its Earn Interest Product, the North American Securities Administrators Association (NASAA) and the United States Securities and Exchange Commission (SEC) have levied fines totaling $45 million against the company. Nexo Capital has agreed to pay these fines (EIP).
In order to settle its case with the SEC, Nexo has agreed to pay a penalty of $22.5 million and put an end to its unregistered offer and sale of the EIP to investors in the United States. In order to address identical claims brought forth by state regulatory authorities, Nexo has agreed to pay further penalties totaling $22.5 million.
The Chairman of the Securities and Exchange Commission, Gary Gensler, made the following statement: “We charged Nexo with failing to register its retail crypto loan product before providing it to the public, evading important disclosure rules meant to safeguard investors.” In this particular instance, amongst other things, Nexo has decided to stop offering its unregistered loan product to any and all investors in the United States.
Nexo gave its assent to a cease-and-desist order that would prohibit it from violating the registration restrictions of the Securities Act of 1933. The company also did not accept or contest the conclusions of the SEC.
Nexo has agreed to pay a fine of $424,528.30 to each of the states that are a part of the settlement. Additionally, Nexo has agreed to cease offering and selling the EIP as well as accepting any new investments in it until such time as all such operations are in compliance with all applicable state and federal securities laws.
Nexo made the decision to depart the United States in December, at which point it immediately cut off access to its earn interest product in eight states and stopped signing up any new users in the United States for the earn product.
Compiled by Coinbold