Nexo, which was fined $ 22.5 million by the SEC, was fined an additional $ 22.5 million by state regulators.
Punishment Upon Punishment to Nexo
Recently, the United States Securities and Exchange Commission SEC accused crypto lender Nexo of failing to register the offer and sale of an Earn Interest Product (EIP), which it declared as an unregistered security.
The crypto loan platform began offering its EIP in the United States in 2020, a service that allows US investors to give their crypto assets to Nexo in exchange for the company’s promise to pay interest on those assets. Recently, the SEC fined the crypto loan platform $22.5 million for the issue, while the crpto loan platform was hit with an additional $22.5 million by state regulators.
New Regulations from USA and US
With this sanction imposed on Nexo, many new regulations have been introduced on the US side. The United States government has been increasing its efforts to regulate the crypto industry, especially due to recent negative happenings (e.g., the collapse of FTX in November and the arrest of its CEO Sam Bankman-Fried).
Although the crpto loan platform says it voluntarily settled these charges by paying a total of $45 million, the pressure was not only from the SEC. Bulgarian authorities have also reopened an investigation into Nexo on suspicion of money laundering, tax crimes, unlicensed banking and computer fraud.
Australian Market
At the time of writing, the crypto loan platform is still serving Australian customers. However, many lenders have also recently exited the Australian market due to the ongoing effects of FTX as well as increased regulatory scrutiny.
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