Nexo agrees to $45M settlement with SEC and NASAA over earn product
Crypto lender Nexo Capital has agreed to pay $45 million in penalties to the United States Securities Exchange Commission (SEC) and The North American Securities Administrators Association (NASAA) for allegedly failing to register the offer and sale of its Earn Interest Product (EIP).
The news was announced by the SEC and NASAA in two separate statements on Jan. 19. According to a statement from the SEC, Nexo agreed to pay a $22.5 million penalty and cease its unregistered offer and sale of the EIP to U.S.
investors.The additional $22.5 million will be paid in fines to settle similar charges by state regulatory authorities, the report said.NASAA in its Jan.
19 statement said that the settlement in principle comes after investigations into Nexo's alleged offer and sale of securities after the past year of investigations."During the investigation, it was discovered that EIP investors could passively earn interest on digital assets by loaning those assets to Nexo.""Nexo maintained total discretion over the revenue-generating activities utilized to earn returns for investors.
Read more on cointelegraph.com
