Nexo reaches historic resolution with US regulators
LONDON, January 19, 2023–(BUSINESS WIRE)–Nexo reached a historic final resolution with the US Securities and Exchange Commission (SEC), the North American Association of Securities Administrators (NASAA), made up of the 50 U.S. states and three territories, the New York Attorney Generalthem Texas Department of Bankingthem Washington Consumer Services Division and the Alaska Banking and Securities Division.
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Important features of the settlement with US federal regulators include:
Settlements are on a no-admit-no-refuse basis.
The only allegation was that Nexo’s Earn Interest Product (EIP) was an unregistered securities offering.
This concludes all multi-year investigations into Nexo, examining various aspects of the company, following the company’s voluntary decision to cease offering its EIP in the US, Nexo’s proactive exit from the US market of orderly manner and an agreement to pay a fine, payable over a period of 12 months.
US federal regulators do not claim that Nexo engaged in fraud or deceptive business practices, or that Nexo customers were harmed or misled about Nexo’s financial health.
“We are content with this unified resolution which puts an unequivocal end to all speculation surrounding Nexo’s relationship with the United States. We can now focus on what we do best: creating transparent financial solutions for our global audience,“said Antoni Trenchev, co-founder of Nexo.
“We thank the commissioners involved for their time, effort, and dedication to doing what they believe is in the best interests of their constituents and consistent with American values of transparency, financial freedom, and upholding the highest professional and legal standards. who have built this great nation and to which Nexo is deeply connected. We thank our legal advisors for Schulte Roth and Zabel LLP for facilitating a most constructive dialogue with US federal and state regulators, as well as with the New York Attorney General’s Office, which helped us achieve this most favorable outcome,” said Trenchev.
It is Nexo’s belief that the company has been recognized for what it truly is – a pioneer, like Uber and Airbnb, providing disruptive solutions in a rapidly changing environment. Given that innovators do not quite fit into existing arrangements, a constructive dialogue for the improvement of existing regulatory frameworks is of paramount importance.
Kosta Kantchev, co-founder of Nexo, added: “We are confident that a clearer regulatory landscape will soon emerge, and companies like Nexo will be able to offer value-creating products in the United States in a compliant manner, and the United States will further strengthen its position as a driving force. world of innovation.“
Nexo has fully cooperated with US government investigations since day one. These resolutions are the culmination of almost two years of work and clearly show that Nexo is not a problem but part of the solution. It is also an extension of Nexo’s philosophy of building a robust and durable business model, which has stood the test of time and is part of its dedication and unwavering commitment to the highest standards. standards in terms of compliance with its regulations and KYC/AML/CTF obligations, protecting customers and investors, and ensuring the financial stability and growth of its operations and the industry as a whole.
Nexo is the world’s leading digital asset institution. The company’s mission is to maximize the value and utility of digital assets by offering a comprehensive suite of products including advanced trading solutions for retail and institutional clients, liquidity aggregation from leading sites and tax-advantaged asset-backed lines of credit. In early 2022, the firm launched its Nexo Ventures investment arm, which now has more than 60 portfolio companies. Nexo has processed over $130 billion for over 5,000,000 satisfied users in over 200 jurisdictions.
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