Cryptocurrency lending firm Nexo Capital agreed on Thursday to pay $45 million in fines after the United States Securities and Exchange Commission (SEC) slapped them with charges.
The penalty consists of $22.5 million to the SEC and an additional $22.5 million to state regulators, the SEC said in a statement.
The charges are linked to the platform’s Earn Interest Product, which began in June 2020. Crypto investors could offer their assets for alleged earned interest but ceased the product in February last year.
At the time, the SEC slapped a company for similar offences, triggering the firm to cease offerings for the Earn programme.
Nexo stated it was “content” with its settlement, adding: “We are confident that a clearer regulatory landscape will emerge soon, and companies like Nexo will be able to offer value-creating products in the United States in a compliant manner.”
Speaking further, Andrew Harnett, North American Securities Administrators Association (NASAA) president, said that US securities laws were “designed to protect investors through full and fair disclosure.”
He continued: “State securities regulators continue to lead the effort to ensure companies involved in offering digital asset investments comply with our laws and that investors are treated fairly.”
Complying with the ruling, Nexo said it would stop selling its US products over the next few months due to US regulations. The SEC has also hit companies such as Genesis and Gemini lawsuits over allegations of its interest-earning programme.
