Crypto lender, Nexo, in litigation for months with the Securities and Exchange Commission (SEC) and various regulators in several US states about its high-yield savings offer, “Earn Interest Product”, gives up. More precisely, to settle his dispute, he agreed to open his wallet, to the tune of 45 million dollars, and to no longer offer his sulphurous product to the US public.
Earn products on unwelcome cryptos in US territory
Crypto interest accounts have never really been in the odor of holiness on American soil. All the companies or exchanges having rubbed shoulders with it, have always had trouble with the local authorities. Yesterday the dead Celsius, Travel Digital and BlockFi as well as the No. 1 exchange in the United States, Coinbase, with its stillborn product on USDC. Today, and while they have many other fish to fry, it is the platforms Gemini and Genesis who suffer the wrath of the SEC for their joint Earn offer.
Nexo is one of the few survivors of the CeDeFi segment. As a reminder, this is a hybrid system that supposedly mixes the virtues of centralization and decentralization to provide access to financial profitability on cryptos. This sector which had its heyday during the last rally of Bitcoin and its cadets, has since fizzled, the crypto winter revealing the dubious, if not fraudulent, practices of a number of its craftsmen..
But its situation remains fragile, its customers having recently rushed to withdraw their funds en masse following a search of its Bulgarian premises for strong suspicion of money laundering. Result: Nexo saw more than $158 million disappear of its platform within 24 hours, enough to then agree to get your hands on the wallet to appease people’s minds and avoid a new wave of withdrawals.
Survivor Nexo pays $45 million fine
In fact, according to two separate statements dated January 19, the SEC and the North American Securities Administrators Association (NASAA) announced that Nexo had agreed to pay $22.5 million in fines each. An amount allegedly reduced in view of the good cooperation of the lender, which for its part evoked rather an impossibility to dialogue.
Nevertheless, agreeing to pay penalties does not constitute consent to the grievances formulated. In effect, the company has neither admitted nor denied the conclusions of the investigations conducted against him, accusing him of having violated securities regulations.
We accused Nexo of failing to register its retail crypto lending product before offering it to the public, circumventing essential disclosure requirements designed to protect investors.
Gary Gensler, SEC boss, in Communicated
Anxious to reassure its users, it just pointed out in a press release published on its site, that no fraud or misleading commercial practice had been identified.
We are content with this unified resolution which puts an unequivocal end to all speculation surrounding Nexo’s relationship with the United States. We can now focus on what we do best: creating transparent financial solutions for our global audience.
Antoni Trenchev, co-founder of Nexo, in Communicated
Certainly, this beginning of the year is particularly difficult for Nexo but the regulators, and not only in the United States, having decided to tighten their grip around everything that has to do directly or indirectly with crypto, following a biased interpretation of the FTX affair (a story of scammers and not crypto)the industry has a lot to worry about.
We would like to say thanks to the writer of this write-up for this awesome material
Nexo agrees to pay a $45 million fine to US authorities – CryptoActu
Find here our social media profiles , as well as other pages related to it.https://metfabtech.com/related-pages/