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Nexo Agrees to Pay $45 Million in Fines to US Authorities

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Nexo Agrees to Pay $45 Million in Fines to US Authorities


Back in September, the Californian DFPI and other U.S. regulators ordered Nexo to desist from offering Earn Interest Products (EIP), which in the company’s case took the form of crypto asset lending accounts.

At the time the charges were filed, Nexo had already ceased offering the accounts to U.S. investors.

However, U.S. investors could still use the feature by opting for automatic renewal on already existing accounts.

Cooperation With Authorities

Four months later, both the SEC and The North American Securities Administrators Association (NASAA) announced that their legal actions against the lender had concluded. As a result of the investigation, Nexo voluntarily agreed to pay $45 million in fines.

The crypto platform refused to confirm or deny the regulators’ findings – nevertheless, a spokesman for the SEC stated that the penalties imposed on the firm took into account Nexo’s cooperation and willingness to engage with regulators without constraint.

Furthermore, SEC Chairman Gary Gensler stated that Nexo was not charged for operating an EIP but for failing to register it properly.

“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. Compliance with our time-tested public policies isn’t a choice. Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable. In this case, among other actions, Nexo is ceasing its unregistered lending product as to all U.S. investors.”

Multiple Fines Split Between Regulators

The $45 million in penalties will be paid out to multiple entities across at least 18 separate fines. The largest accounts for half of the total sum and will be paid out to the SEC directly.

The remaining $22.5 million will be paid out to at least 17 separate state securities regulators, coordinated by the NASAA. The exact states are unnamed; however, we can surmise that California is one of them, owing to their early involvement in the case.

The agreement was also confirmed by Nexo in a 9-part thread on Twitter.

In the thread, the spokesperson for Nexo once again stated that there were no allegations of fraud or anything else except an unregistered securities offering. The spokesperson also reiterated that the company is pleased to have engaged in constructive dialogue with the authorities and that they will continue to grow and improve based on the feedback they received.

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BitPay Announces Partnership With MoonPay – Bitcoin Magazine

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Bitcoin And Artificial Intelligence Frees Your Time - Bitcoin Magazine


BitPay and MoonPay, leading bitcoin and cryptocurrency payments infrastructure providers, have partnered “to provide BitPay users with significantly increased ways to buy cryptocurrency instantly, and at great rates.”

“BitPay’s unique marketplace experience also presents multiple rates for buyers, ensuring they receive the best possible price for their cryptocurrency purchases,” the press release states. “Additional benefits of the integration include fast delivery to any owned wallet address, as well as the ability for buyers to pay with their preferred method, including credit card, debit card, Apple Pay, Google Pay or a variety of local bank transfer methods.”


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Why Real Regulatory Change In Crypto Has Not Happened

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Why Real Regulatory Change In Crypto Has Not Happened



Legislators need to educate themselves on Web3 if they care about protecting consumers, Steven Eisenhauer, chief risk and compliance officer at Ramp, writes.


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South Korea to deploy cryptocurrency tracking system in 2023

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South Korea to deploy cryptocurrency tracking system in 2023


The Ministry of Justice in South Korea announced plans to introduce a crypto-tracking system to counter money laundering initiatives and recover funds linked to criminal activities.

The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance, according to local media outlet khgames.

While the system is slated to be deployed in the first half of 2023, the South Korean ministry shared plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”

The South Korean police previously established an agreement with five local crypto exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for crypto investors.

Related: South Korean prosecutors request arrest warrant for Bithumb owner: Report

The South Korean Supreme Court ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017.

The finalized ruling from the supreme court ordered damages ranging from as little as $6 to around $6,400 be paid to the 132 investors involved.

“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.


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