Nexo shutters US Earn product a month after settling with regulators
Cryptocurrency lending firm Nexo Capital is set to stop using Earn Interest’s lucrative product for its clients in the United States about a month after it agreed to pay $45 million in fines to regulators.
Nexo announced the cessation of blog activity on February 10th. mail stating that the product will be stopped on April 1st. The program allowed users to earn daily returns on certain cryptocurrencies by lending them to Nexo.
Update for our US customers.https://t.co/wRiDOPKEqg
— Nexus (@Nexus) February 11, 2023
Nexo cited its Jan. 19 settlement with the Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) as the reason for terminating the Earn offer.
Nexo was investigated by the SEC, NASAA and at least 17 state securities regulators for failing to register the offering and sale of its Earn product.
Nexo paid a $22.5 million fine and agreed with the SEC to stop offering its Earn product to US investors. Additional fines of $22.5 million were paid by government regulators to settle fees.
Nexo did not acknowledge or refute the SEC’s findings, but agreed to a cease-and-desist order prohibiting it from violating securities laws.
U.S. financial regulators warn against exposure to cryptocurrencies in retirement accounts
According to Nexo’s announcement, Earn users will continue to receive interest payments until April 1st. Those who subscribe to the fixed-term product unlock it on the termination date, and Nexo encourages users to “start planning to withdraw their funds.”
Nexo’s other services and products will not be affected, the firm said.
Credit : cointelegraph.com