Friday, March 31, 2023
Bitcoin - Altcoin News
No Result
View All Result
  • Login
No Result
View All Result
Bitcoin News
No Result
View All Result
Home News Gary Gensler

Crypto Lender Nexo Agrees to Pay $45 Million in Fine to SEC

news by news
January 20, 2023
in Gary Gensler, News, Nexo, US SEC, US SEC Chief
0
Crypto Lender Nexo Agrees to Pay $45 Million in Fine to SEC
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

READ ALSO

Breaking: U.S. PCE Inflation Surges 0.3%, More Interest Rate Hikes Ahead?

Reasons Why Bitcoin (BTC) Price Is Falling Today While Altcoins Remains Strong

NEXO

A week after Nexo’s office in Bulgaria was raided, the crypto lender reached a settlement with the U.S. Securities and Exchange Commission (SEC) paying a total of $45 million in fines. The SEC has charged Nexo for the unregistered offering of its crypto lending product, the Earn Interest Product (EIP), to the U.S. investors.

For this, Nexo has agreed to pay a $22.5 million penalty and cease its unregistered offer. Besides, the crypto lender has agreed to pay an additional $22.5 million in order to settle similar charges by the state regulatory authorities.

As per the SEC, the crypto lender started offering its EIP product around June 2020. This EIP product allowed US-based crypto investors to tender their digital assets to Nexo in exchange for the promise to pay interest.

The order also notes that Nexo marketed this EIP as an interest-earning product on crypto deposits. Later, the crypto lender exercised its discretion by using investors’ crypto assets in different ways. This way, Nexo generated income for its own business along with funding the interest payments to EIP investors.

Nexo’s EIP Is A Security

In its filing, the SEC noted that such a use of the EIP product by the crypto lender constitutes a security. The securities regulator added that Nexo failed to register its offer and sale of the EIP. Speaking on the development, SEC Chair Gary Gensler said:

“We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors. Compliance with our time-tested public policies isn’t a choice. Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable. In this case, among other actions, Nexo is ceasing its unregistered lending product as to all U.S. investors.”

Nexo has agreed to pay the fine without challenging the SEC’s decision. Last month, the crypto lender announced its exit from the US market while deciding to cut off its EIP product immediately.

The post Crypto Lender Nexo Agrees to Pay $45 Million in Fine to SEC appeared first on CoinGape.

Related Posts

Breaking: U.S. PCE Inflation Surges 0.3%, More Interest Rate Hikes Ahead?
24/7 Cryptocurrency News

Breaking: U.S. PCE Inflation Surges 0.3%, More Interest Rate Hikes Ahead?

March 31, 2023
Reasons Why Bitcoin (BTC) Price Is Falling Today While Altcoins Remains Strong
24/7 Cryptocurrency News

Reasons Why Bitcoin (BTC) Price Is Falling Today While Altcoins Remains Strong

March 31, 2023
360 Million XRP On The Move Amid Ripple CEO’s Fresh Attack
24/7 Cryptocurrency News

360 Million XRP On The Move Amid Ripple CEO’s Fresh Attack

March 31, 2023
Top Whale Buys Billions Of Shiba Inu (SHIB) Tokens, Burn Rate Jumps Over 700%
24/7 Cryptocurrency News

Top Whale Buys Billions Of Shiba Inu (SHIB) Tokens, Burn Rate Jumps Over 700%

March 31, 2023
Ripple CEO Calls In Congress To Take Notice Of US SEC Enforcements
24/7 Cryptocurrency News

Ripple CEO Calls In Congress To Take Notice Of US SEC Enforcements

March 31, 2023
Justin Sun’s Huobi Exchange Partners Gala Games For L1 and Web3 Development
24/7 Cryptocurrency News

Justin Sun’s Huobi Exchange Partners Gala Games For L1 and Web3 Development

March 31, 2023
Next Post
Crypto Lender Genesis Filed for Bankruptcy Amid Troubles

Crypto Lender Genesis Filed for Bankruptcy Amid Troubles

POPULAR NEWS

Bitcoin Price Prediction: On-Chain Data And Analysts Predict More Upside For BTC

Bitcoin Price Prediction: On-Chain Data And Analysts Predict More Upside For BTC

December 7, 2022
Crypto Prices Today: Huobi Token, Ethereum, Dogecoin Is Up; Solana Takes A Dip

Crypto Prices Today: Huobi Token, Ethereum, Dogecoin Is Up; Solana Takes A Dip

December 7, 2022
Donald Trump’s NFT Trading Cards Pump 350% In Value Upon Launch

Donald Trump’s NFT Trading Cards Pump 350% In Value Upon Launch

December 17, 2022
Bitcoin Price Today: BTC Rises By Nearly 2% While BlockFi Files For Bankruptcy

Bitcoin Price Today: BTC Rises By Nearly 2% While BlockFi Files For Bankruptcy

December 7, 2022
Breaking: “Guilty” FTX Executive Will Now Cooperate Against SBF In Probe

Breaking: “Guilty” FTX Executive Will Now Cooperate Against SBF In Probe

February 28, 2023

EDITOR'S PICK

Breaking: Kazakhstan Passes Stringent Crypto And Mining Bills

Breaking: Kazakhstan Passes Stringent Crypto And Mining Bills

December 7, 2022
Can eRupee Be Converted To Cash? RBI Official Clarifies

Can eRupee Be Converted To Cash? RBI Official Clarifies

January 19, 2023
Breaking: Euler Finance Attacker Returns Majority Of Assets In Flash Loan Exploit

Breaking: Euler Finance Attacker Returns Majority Of Assets In Flash Loan Exploit

March 25, 2023
FTX News: Sam Bankman-Fried Bail Conditions Revised; FTT Manipulation By Genesis

FTX News: Sam Bankman-Fried Bail Conditions Revised; FTT Manipulation By Genesis

March 28, 2023
Bitcoin - Altcoin News

© 2022 coingger.com

Navigate Site

  • Europe
  • Exchange
  • Elon Musk
  • ETH Price
  • crypto Tax U.S.
  • CZ
  • Crypto Miners
  • BTC Price
  • ChatGPT
  • China crypto
  • Coingecko
  • Binance Smart Chain
  • Bitcoin $100K
  • Airdrop

Follow Us

No Result
View All Result
  • Homepages
    • Home Page 1

© 2022 coingger.com

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In