Nexo will pay $45 million to settle with the SEC

Black crypto series – For several months, Nexo faces accusations from Securities Commission. Accused of failing to disclose risks associated with his service win and violations of securities regulations, the SEC proposes the resolution of 45 million dollars to end his investigation… and save Nexo from a costly lawsuit.

$45 million: the price of peace with the SEC

According to available information, DRY dropped her accusations against Nexo and claimed that the exchange had sold cryptocurrencies without regard to the celebrity securities law. In other words, the crypto platform allegedly violated securities regulations regarding its Earn service.

Thus, in a press release dated January 19, the SEC clarifies that the exchange is fined 45 million dollars. 22.5 million dollars will go to DRY AND Another $22.5 million will go to state regulators, NASAAA (North American Securities Administrators). For more, Next will also have to stop its Earn service in the United States, which is already the case.

“We accused Nexo of failing to register its retail crypto lending product before offering it to the public, circumventing essential disclosure requirements designed to protect investors (…) Compliance with our established public policies is not a choice. When crypto companies do not comply, we will continue to pursue the facts and the law to hold them accountable. In this case, among other actions, Nexo will discontinue its non-registered lending product for all US investors. »

Gary Gensler, chairman of the SEC – Source: DRY

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Nexo: a desire to cooperate with the regulation

For its part, in a series of 9 posts, Nexo explains its desire to positively conclude this deal with the SEC, to grow and invites regulation to quickly bring a regulatory framework for disruptive technologies such as cryptocurrencies.

“As our co-founder said, ‘We are confident that a clearer regulatory landscape will soon emerge and that companies like Nexo will be able to offer products that create value in the United States in a compliant manner.’ (…) Nexo’s philosophy of building a strong and sustainable business model has once again been uncompromising. We will continue to maintain the highest standards of compliance and grow the economy of digital assets responsibly, for you. “

Nexo Thread – Source: I tweet

Nexo’s problems with regulation are not recent. They are also not just about the United States. Indeed, the cryptocurrency platform has also been accused of fraud and organized crime by the Bulgarian authorities. These are then 158 million dollars who left the platform in less than 24 hours after powerful controls of the authorities in the premises and residences of certain employees. In a cloud of suspicion, Nexo denies the allegations from Bulgarian regulators.

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