Nexo has agreed to pay $45 million to federal and state agencies for failing to register its crypto product.
The SEC accused the company of failing to register its crypto loan product.
Nexo Agreed with Regulators
The SEC said in a statement that the crypto lender will pay a $22.5 million penalty and has agreed to stop selling its product.
Nexo has also agreed to pay an additional $22.5 million for similar accusations made by state authorities.
Gurbir Grewal, director of the SEC’s executive division, said:
“We are concerned with the economic realities, not the labels put on the offers. Cryptoassets are not exempt from federal securities laws.”
Nexo began offering its interest earning product in the US in 2020. The product allowed investors to deposit their crypto in Nexo in exchange for a commitment of interest.
The company agreed to pay $45 million without admitting or denying the SEC’s accusations.
Kosta Kantchev, co-founder of the company, said:
“We are confident that there will be a clearer regulatory environment soon and companies like Nexo will be able to offer their products in the US in a more harmonious way.”
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