Home 2023 Nexo Departing US after Settlements with Regulators

Nexo Departing US after Settlements with Regulators

by John Heffernan

Nexo’s earn product has been shut down due to a multi-million-dollar settlement the company reached with US regulators last month.

Nexo announced the termination in a blog post on February 10, stating that the product would be discontinued on April 1. Users could earn daily compounding yields on certain cryptocurrencies by lending them to Nexo.

Nexo cited its Jan. 19 settlements with the Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) as the reason for the halt in offering Earn.

Nexo was investigated by the SEC, NASAA, and at least 17 state securities regulators for failing to register the offer and sale of its Earn product.

A $22.5 million penalty has been paid by Nexo and agreed with the SEC to stop offering its Earn product to U.S. investors; an additional $22.5 million in fines was paid to settle state regulator charges.

Nexo did not admit or deny the SEC’s findings but agreed to a cease-and-desist order barring it from violating securities laws.

Earn users will continue to receive interest payments until April 1, according to Nexo’s announcement. Those who have signed up for a fixed-term product will have it unlocked on the termination date, with Nexo advising users to “start planning the withdrawal of your funds.”

According to the company, other Nexo services and products will be unaffected.

About Nexo

Nexo is a globalized institution for digital assets. The mission of the company is to maximize the value and utility of digital assets by providing a comprehensive suite of products such as advanced trading solutions for retail and institutional clients, liquidity aggregation from leading venues, and tax-efficient asset-backed credit lines. Nexo Ventures, the company’s investment arm, was founded in early 2022 and now has over 60 portfolio companies. Nexo has processed over $130 billion for over 5,000,000 satisfied users in over 200 jurisdictions.

To speak to a professional about Cryptocurrency, contact KXCO.IO.

More News:

Why Sam Bankman-Fried did us all favor

Paxos will be sued by SEC over Stablecoin

Blockchain Bridges: How safe is it?

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.