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Cryptocurrency lender Nexo Capital to pay $45 million to settle lawsuits filed by U.S. states and the Securities and Exchange Commission for failing to properly register cryptocurrency lending products as securities offerings Agreed.
On Thursday, the SEC said the claims relate to Nexo’s Earn Interest products. This allowed US investors to lend cryptocurrencies to the company in exchange for promised interest payments.
Nexo has agreed to pay two tranches of $22.5 million to settle similar claims brought by the SEC and US state regulators, the agency said. The company also agreed to stop selling its products to US investors.
“Adhering to time-tested public policy is not an option,” SEC Chairman Gary Gensler said in a statement. , hold them accountable.”
The company has been the latest target of state and federal officials moving to eliminate interest-bearing cryptocurrency accounts aimed at everyday consumers, which some companies tout as resembling bank accounts. is a cryptocurrency lender.
Nexo co-founder Antoni Trenchev said:
The SEC noted that Nexo voluntarily stopped offering lending products to new U.S. investors after the SEC indicted BlockFi over similar issues last February. The lender announced in December that it was suspending the program in certain U.S. states and phasing out all services in the country, he added.
Bulgarian authorities raided the offices of London-based cryptocurrency lender Sofia last week. More than 300 police officers and officials stormed into offices as part of an investigation into potential organized crime, money laundering, tax crimes, crimes related to unauthorized banking and computer fraud, according to the Bulgarian public prosecutor. It is said that Nexo denies any wrongdoing.
The move is the second cryptocurrency enforcement action by the SEC, which last Thursday sued Gemini, the cryptocurrency exchange founded by the twins of digital asset trading group Genesis and Winklevoss, for similar violations.
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