Nexo Announces its US Withdrawal Amid SEC Settlement

Nexo has recently announced its withdrawal from the United States.
U.S. clients will allegedly still be paid interest.
Nexo agreed to settle, paying $22.5 million to the SEC.

The most prominent participant in the troubled lending market for digital assets, Nexo, has decided to stop offering interest-bearing products in the US.

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The company has done this as a reaction to allegations that its Earn Interest Product was an unregistered security. In addition, Nexo was successful in reaching a “no-admit-no-deny” settlement. Nevertheless, the other goods and services that Nexo provides in the United States, including its exchange, bitcoin spend debit card, and digital wallet, are not impacted in any way by this move.

Until that point, supposedly, U.S. customers would still be paid interest on their accounts. The expiration date will allegedly arrive for all set periods for which customers’ cryptocurrency was locked. Also, it urged that customers begin making preparations to withdraw their funds by the specified date.

According to Nexo, the failure of the FTX exchange was caused by a large scam that is estimated to have cost customers as much as $8 billion. This was then followed by the failure of other cryptocurrency lending companies such as Celsius and Voyager Digital.

Nexo revealed in a recent update that its departure from the US market was the consequence of an agreement reached with the Securities and Exchange Commission (SEC) and state authorities. As a result, the company has decided that, from April 1, 2023, it will no longer provide products that accrue interest.

Nexo reached a settlement with the SEC and agreed to pay an equivalent amount to authorities in all fifty states who had begun a parallel investigation against the firm. The total payment was $22.5 million. In addition, as a condition of the settlement, the company agreed to withdraw all of its EIP goods from the United States market.

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Godfrey Mwirigi

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.