Giant Company Agrees to Pay Millions of Dollars in Compensation to SEC!

Nexofor not registering the lending product SEC and the state paid $45 million to settle the charges.

Nexo Agrees to Pay $45 Million to SEC

Nexo has agreed to pay $45 million to federal and state agencies after being accused by the Securities and Exchange Commission for failing to register the offering and sale of a retail crypto-asset lending product called Earn Interest Product.

The agency said in a statement that the lender would pay a $22.5 million penalty and agreed to stop selling the Earn Interest Product to US investors.

Nexo also agreed to pay an additional $22.5 million to settle similar charges made by state regulatory authorities.

“We are concerned with the economic realities of the proposals, not the labels,” said Gurbir S. Grewal, director of the SEC’s enforcement division. “Crypto-assets are not exempt from federal securities laws.” said

In 2020, Nexo began offering and selling its Interest Earnings Product in the US. The product allowed investors to transfer their crypto to Nexo in exchange for the firm’s promise to pay interest.

The agency states that Nexo is marketing the product as a way for investors to earn interest, and that “Nexo cryptocurrency He said he used the mandate to use his assets in a variety of ways to generate income for his own business and to finance interest payments to EIP investors.

Nexo accepted a cease and desist order to prevent the agency from violating the registration provisions under the Securities Act of 1933, without accepting or denying its findings.

Nexo said in a statement that the agreements are not based on acceptance or denial.

“We are confident that a clearer regulatory environment will soon emerge and companies like Nexo will be able to harmoniously deliver value-creating products in the US, further solidifying the US’s position as the world’s innovation hub,” Nexo co-founder Kosta Kantchev said on Thursday. .

*Not investment advice.