• Crypto lender Nexo has settled a lawsuit with multiple US states for $22.5 million.
• The Ohio Division of Securities was the latest to join the settlement, which includes multiple US states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
• In total, the firm has agreed to pay $45 million in settlements with both the SEC and NASAA.
Nexo Resolves Multistate Lawsuit
Crypto lender Nexo has reached a $22.5 million settlement with multiple US states after being accused of failing to register its Earn Interest Product (EIP) with relevant agencies. This is in addition to previously-agreed settlements with both the SEC and NASAA totaling $45 million in total payments from Nexo.
Ohio Joins Settlement
The Ohio Securities Commissioner Andrea Seidt said that all firms dealing with digital assets must comply with Ohio securities laws and that they will be protecting Ohioans‘ investments by ensuring conformity amongst companies operating there. As part of the settlement, Nexo has agreed to cease paying interest on existing EIP accounts by April 1st, 2021 except if so qualified for sale in Ohio specifically.
SEC Remarks
Gurbir Grewal, Director of the SEC’s Division of Enforcement, pointed out that digital assets are subject to federal securities laws no matter what they are called or offered as and that Nexo had agreed to cease offering EIPs in the US as part of their settlement agreement. He said that any company offering products which constitute securities must comply with applicable laws or face legal repercussions.
Nexo Comments
Nexo referred to this resolution as „a landmark“ one and noted that it would help maintain compliance within their business operations moving forward across all jurisdictions involved in this case including those mentioned above as well as others who may have joined since then without announcement yet made publicly available at this point in time.
Conclusion
In conclusion, crypto lender Nexo has successfully resolved a multistate lawsuit worth $22.5 million alongside other settlements amounting up to $45 million between itself and different regulatory bodies such as SEC and North American Securities Administrators Association (NASAA). This is an important milestone for companies working within digital asset space as it demonstrates how important it is for them to remain compliant when offering services related to these assets otherwise risking hefty fines or even closure depending on severity of violation committed during operation process at hand overall speaking now here today on these very matters right away indeed effectively forthwith then too too!