Nexo admits its regulatory violation and is set to pay a $45 million fine


Crypto lender Nexo has agreed to pay $45 million in fines to regulators for regulatory violations and has decided to stop offering and selling its Interest Product (EIP) to US investors, according to a latest news release. statment by the US Securities and Exchange Commission (SEC).

Nexo settled a $22.5 million fine to the Securities and Exchange Commission and another $22.5 million in fines to the North American Securities Managers Association (NASA) in connection with its interest-earning product.

However, the lender established in a separate post That the premise of the fine has nothing to do with fraud or illegal business activities. Instead, Nexo said in the statement that the fine arose because its EIP had not been registered with regulators.

In addition, the company alleged that the decision to pay the fines was made as an attempt to end all investigations into many aspects of Nexo’s business.

Insight into fine conditions

With an explanation of the justification for the fine, the Securities and Exchange Commission advertiser Nexo’s cooperation and willingness to address its shortcomings convinced the regulator to reduce the severity of the penalty.

NASA, on the other hand, divulge that about 17 separate state securities regulators have launched an investigation into Nexo’s EIP. Thus, upon conclusion of the investigation, the regulators accepted the terms laid down in the lender’s settlement. For that, Nexo will pay about $424,528 for each organizer, though NASA has not disclosed their names.

According to the release, Nexo co-founder Anthony Trenchev said the payment will be distributed over a year. Trenchev also expressed optimism that a healthy business climate will result when clearer regulations are put in place in the United States.

Nexo is also struggling with authorities outside the United States. As part of an investigation into the company, the Bulgarian authorities raided More than 15 Nexo sites last week in Sofia and charged four people. The organizers stated that they are investigating organized crime, tax crimes, money laundering, illicit banking activity and computer fraud.



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