Nexo Halts Earn Interest Product for US Customers

• Nexo agreed to cease its Earn Interest Product service for its U.S customers. 
• SEC concluded Nexo’s charges on a no-admit-no-deny basis.

Following Nexo’s settlement with US Securities and Exchange Commission (SEC), and the North American Securities Administrators Association (NASAA), the lending company planned to stop its Earn Interest Product for its U.S customers. 

The leading lending company Nexo announced in its February 10th blog post that it decided to ban its Earn Interest Product service to United States users from April 1, 2023. Further, Nexo did not admit or even refuse the SEC’s charges. Also, the lending company pointed out that its recent commitment does not affect the company’s other services.

Where it All Started?

In parallel to the panic over withdrawals that affected many exchanges last year, the crypto lender, Nexo faced a raid on its headquarters on 12th January 2023. According to reports, the Bulgarian attorney general and 300 more investigators from various authorities were looking into Nexo.

Also, the company has been charged with tax evasion, money laundering, and violating financial sanctions related to the Russian Federation. However, on January 19, 2023, the lending firm Nexo Capital agreed to settle accusations brought by the SEC and state regulators by paying $45 million in fines. For “unregistered offers and sales of its Earn Interest products”, which the company offering since 2020. 

According to the SEC report, Nexo committed to pay a $22.5 million penalty to state authorities and a $22.5 million to U.S investors regarding its Earn Interest Product for American investors. After that, the U.S regulators completed all multi-year ‘investigations’ into the crypto lender and concluded it on a “no-admit-no-deny basis”.

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