• Nexo has agreed to pay $45 million in fines to U.S. authorities.
• The fines were due to their offering of Earn Interest Products (EIP) to U.S. investors.
• The SEC and NASAA opted to give a lower penalty due to Nexo’s cooperation.

Nexo, the crypto-based lending services provider, has reached an agreement with the U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) to pay $45 million in fines. This comes after the Californian Department of Financial Protection and Innovation (DFPI) and other U.S. regulators ordered the company to desist from offering Earn Interest Products (EIP) to U.S. investors in September.

The EIPs, in Nexo’s case, took the form of crypto asset lending accounts which were offered to U.S. investors. However, despite the order to desist from offering the accounts, U.S. investors could still use the feature by opting for automatic renewal on already existing accounts. This prompted the legal actions from the SEC and NASAA.

In December, the SEC and NASAA announced that their legal actions had concluded and that Nexo had agreed to pay the $45 million fine. The regulators also opted for a lower penalty due to Nexo’s cooperation in the investigation.

In addition to paying the fine, the company has also agreed to further strengthen its compliance programs and procedures. This includes further training of personnel, compliance reviews, and updates to its policies and procedures.

The events of the past few months have been a major learning experience for Nexo. The company has since taken steps to ensure that it is fully compliant with U.S. regulations and that it is taking all necessary measures to protect its customers.

Nexo is now looking to the future and is focused on creating products and services that will help customers maximize the value of their crypto assets. With the fine paid and its compliance programs updated, Nexo is hoping to move forward and continue to offer the best possible experience to its customers.