Crypto firm Nexo Capital agrees to settle SEC, state charges – Business Insurance

(Reuters) – Nexo Capital Inc. has agreed to pay $45 million in penalties to settle charges from the US Securities and Exchange Commission and state regulators that the crypto company failed to register its crypto asset lending products, the SEC on Thursday.

Nexo has agreed to pay a $22.5 million settlement to the SEC and another $22.5 million in state fines, the SEC said in a statement.

Nexo began offering its lending products in June 2020, allowing American investors to hand over their crypto assets to the company in exchange for a promise of interest, the company said. the SEC. The company stopped offering the product to new investors after the SEC announced similar charges against another company in February 2022.

The UK-based crypto lender said it will withdraw its US products and services in the coming months due to conflicts with the authorities.

Nexo has neither admitted nor denied the SEC’s findings.

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