News from the US reveals that Nexo Capital has agreed to pay $45 million in penalties to the SEC and the North American Securities Administrators Association (NASAA).
This occurred due to Nexo’s failure to list the agreement and sale of its Earn Interest Product. The crypto lender did not contest the SEC’s conclusions.
The SEC and NASAA revealed the announcement in separate statements on 19 January. According to the SEC announcement, Nexo agreed to pay a $22.5 million penalty and discontinue its unlisted offer and sale of the EIP to US investors.
A further $22.5 million will be paid in fines to satisfy identical claims brought by state regulatory agencies.
Nexo news – NASAA view
NASAA stated in a report that the settlement, in principle, follows an inquiry into suspected offers and sales of securities during the previous year. During the investigation, it was determined by Nexo that EIP investors might receive passive interest on digital assets by lending those assets to the business.
They also retained complete control over the revenue-generating operations used to create returns for investors.
The firm sold and advertised the EIP and other products to investors in the US through its website and social media platforms, implying that investors may get returns of up to 36% in some cases, NASAA said.
Nexo news – SEC view
The SEC claimed that the commission considered Nexo’s degree of cooperation throughout the settlement talks and the swift corrective actions taken to rectify their inadequacies.
“We charged Nexo with failing to register its retail crypto loan product before providing it to the public, circumventing important disclosure rules needed to safeguard investors,” said SEC Chairman Gary Gensler.
“Where crypto firms fail to comply, we will continue to hold them accountable based on the facts and the law.”
In this situation, he noted that Nexo, among other things, is discontinuing its unregistered loan product to all US investors.
Nexo news – How settlement came about
Nexo’s settlement is based on a cease-and-desist order agreement that prevented the company from breaching any Securities Act of 1933 requirements.
At least 17 different state securities authorities conducted the inquiry, and they all agreed to the conditions of their settlement. While the respective states were not identified, the crypto lender agreed to pay a $424,528 fine to each of them.
Source link https://news.monitalks.io/news/article/nexo-news-settlement-with-sec
Source link – https://topnews-usa.com/crypto-news/nexo-news-45m-settlement-agreed/