Following a settlement with the U.S. Securities and Exchange Commission (SEC) announced last month, cryptocurrency lending platform Nexo will discontinue Earn Interest on April 1 for all US customers, including both citizens and residents.
Nexo Asks US Customers To Pay Their Debts And Withdraw Funds
“We urge you to start planning to withdraw your funds at a convenient time by this date,” the company said in a blog post, adding that no other Nexo services will be affected. Customers with outstanding loans will be given “adequate time and notice” to repay their loans and withdraw their secured assets, it said.
Non-US customers who believe their accounts have been tagged in error should update their verification information by submitting documents such as bank statements or electricity bills.
Nexo had agreed to pay $45 million after being accused by the SEC for failing to register the supply and sale of a retail cryptocurrency lending product first offered in the US in 2020. Nexo had accepted an order to prevent it from violating the registration provisions under the Securities Act of 1933, without admitting or denying the charges.
“It reflects our belief that the development of clear regulatory frameworks is the best way to protect the crypto industry and bring it into the mainstream in a safe and compliant manner,” the company said in a statement.
Similarly, recently bitcoin exchange Kraken also stopped its Earn product and paid a $30 million fine.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!