Nexo returns to the United States after a $45 million fine

Nexo, one of the main operators in the crypto credit sector, announces its return to the United States after a long pause following the payment of a 45 million dollar fine to the U.S. Securities and Exchange Commission (SEC).

The return of Nexo: a new chapter in the United States

The crypto-lending platform has announced that it is once again operational for retail and institutional American clients. Users will have access to products such as high-yield cryptocurrency savings accounts, credit lines secured by digital assets, advanced trading tools, and liquidity solutions aimed at professional investors.

This new phase comes almost two years after the agreement reached in January 2023 with the SEC. The supervisory authority had accused Nexo of offering its Earn Interest Product, a cryptocurrency lending product, without the necessary registration. Although it agreed to pay the penalty, the platform neither admitted nor denied its involvement.

A history marked by legal challenges: the fine with the SEC and the initial accusations

In January 2023, the proceeding of the SEC against Nexo was concluded with an out-of-court settlement. The authority had accused the company of violating securities laws, given the offer to the US public of unregistered investment products. This episode prompted Nexo to halt a series of activities in the United States while redefining its regulatory and commercial strategy.

However, the litigation with the SEC was not the only obstacle for the group.

Criminal investigations and the Bulgarian case

In January 2023, the Bulgarian authorities conducted searches in the offices of Nexo, suspecting the company of money laundering, tax offenses, and computer fraud committed from 2018 to 2023. The executives of Nexo firmly rejected all charges.

Subsequently, in December 2023, the Bulgarian Prosecutor’s Office announced the closure of the criminal proceedings. The investigators concluded that they had not found any evidence of illegal activities against Nexo. Nevertheless, it remains evident that similar investigations, even if concluded without convictions, can compromise a company’s image and business prospects.

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The impact of investigations on Nexo’s business

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The legal disputes have had tangible consequences on the economic and operational level for Nexo. According to a report by Reuters published at the beginning of 2024, the company is trying to recover about 3 billion dollars related to the halted investigation, a sum that includes frozen assets and missed business opportunities.

The management of Nexo stated that the investigation has caused serious damage to the company’s reputation and has destroyed significant value for the shareholders. These issues have hindered fundamental strategic projects such as the listing on the stock exchange in the United States and a prominent sponsorship in the world of football.

Nexo looks ahead: what prospects?

Despite the challenges, Nexo’s return to the U.S. market seems to mark a new beginning. It returns to offering its savings and investment products in crypto to consumers and institutions in one of the most dynamic yet regulated markets in the world.

It should be emphasized how Nexo aims to strengthen its compliance standards, opening up to a regulatory context that is more stringent, but also more mature, compared to that of two years ago. The restart of operations indicates the company’s confidence in its internal structure and the solidity of its financial products.

A second chance for Nexo in the United States

The return of Nexo in the United States represents a significant turning point in the global crypto-lending landscape. After facing complex legal proceedings both in America and Europe, the company demonstrates a strategy of resilience and relaunch. 

The challenges are not over: it will have to regain the trust of investors, clients, and regulators. 

However, the new opening in American territory opens interesting prospects for Nexo and for the adoption of cryptocurrencies in the traditional financial sector.