Crypto Lender Nexo to Pay $45M, Cease Offering EIP in Settlement With SEC

Nexo began offering its Earn Interest Product to U.S. customers in June 2020.

AccessTimeIconJan 19, 2023 at 10:27 p.m. UTC
Updated Jan 19, 2023 at 10:50 p.m. UTC
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The U.S. Securities and Exchange Commission (SEC) charged crypto lender Nexo with failing to register the offer and sale of its Earn Interest Product (EIP). Nexo has agreed to pay a $22.5 million fine to the SEC and another $22.5 million to settle similar charges by state regulators.

In agreeing to the settlement, the SEC took note of Nexo's decision in December 2022 to voluntarily halt access to its EIP in eight states and stop signing up any new U.S. customers. Previously to that, Nexo had off-boarded clients in two other states.

Nexo faces regulatory issues elsewhere as well, with a report last week of Bulgarian authorities probing the company on suspicion of money laundering, tax offenses, banking without a license and computer fraud.

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Stephen  Alpher

Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.


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