The Securities and Exchange Commission (SEC) announced charges against Nexo Capital Inc. with failing to register the offer and sale of its retail crypto asset lending product, the Earn Interest Product (EIP), on Jan. 19, 2023.
Nexo has agreed to pay a $22.5 million penalty and cease the sale of EIP to U.S. investors to settle the SEC's charges. Nexo has also agreed to pay an additional $22.5 million to settle similar charges by state regulatory authorities, such as the North American Securities Administrators Association (NASAA), the Attorney General of New York, the Texas Department of Banking, the Washington Consumers Services Division, and the Alaska Division of Banking and Securities.
The company settled the charges on a no-admit-no-deny basis and agreed to a cease-and-desist order, prohibiting the company from violating the registration provisions of the Securities Act of 1933.
Source: Messari