Nexo Agrees To Pay $45M To US Regulators Over Unregistered Lending Product

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Antoni Trenchev; Photo Source: Crypto Insider
In the words of SEC Chair Gary Gensler, “We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors.”

Crypto lender Nexo has agreed to pay $45M to the SEC and state regulators for failing to register its Earn Interest Product (EIP).

In 2022, state regulators filed a lawsuit against Nexo for violating state laws by offering unregistered securities. In its statement, the North American Securities Administrators Association (NASAA) claimed that Nexo also failed to provide disclosures of the risk associated with investing in the EIP. Andrew Hartnett, the President of NASAA, said,

“Our securities laws are designed to protect investors through full and fair disclosure.”



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According to the SEC’s press release, Nexo will pay $22.5M as the penalty for the unregistered offer and sale of the EIP to US clients. The crypto lender will also pay $22.5M as a settlement to state regulators for similar charges.

However, Nexo has neither admitted nor denied the findings of the regulators’ investigation. In a recent blog post, Nexo noted that the $45M settlement will close the multi-year-long inquiries into the firm’s various aspects. 

Written by
Ayush Pande
In the words of SEC Chair Gary Gensler, “We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors.”

Crypto lender Nexo has agreed to pay $45M to the SEC and state regulators for failing to register its Earn Interest Product (EIP).

In 2022, state regulators filed a lawsuit against Nexo for violating state laws by offering unregistered securities. In its statement, the North American Securities Administrators Association (NASAA) claimed that Nexo also failed to provide disclosures of the risk associated with investing in the EIP. Andrew Hartnett, the President of NASAA, said,

“Our securities laws are designed to protect investors through full and fair disclosure.”



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


According to the SEC’s press release, Nexo will pay $22.5M as the penalty for the unregistered offer and sale of the EIP to US clients. The crypto lender will also pay $22.5M as a settlement to state regulators for similar charges.

However, Nexo has neither admitted nor denied the findings of the regulators’ investigation. In a recent blog post, Nexo noted that the $45M settlement will close the multi-year-long inquiries into the firm’s various aspects. 

Written by
Ayush Pande