9 talking about this. Your weekly wrap of Web3 news and trends. According to the suit, Nexo told the attorney generals office it was notifying its New York customers that their accounts would be made inaccessible and that it shut down all of its services in the state by November 11, 2021. (Disclosure: Nexo is one of 22 investors in Decrypt.) Vermont, Oklahoma, Kentucky and Washington also filed cease-and-desist motions, among other charges. He owns marginal amounts of bitcoin and ether. CoinEx is a cryptocurrency exchange founded in 2017 and headquartered in Hong Kong. Nexo has agreed to pay a $22.5 million penalty to the SEC and another $22.5 million in fines to state regulators in relation to its Earn Interest Product to U.S. investors, the SEC said in a statement. Correction (Dec. 5, 2022, 19:30 UTC): Clarifies that new users will not be able to onboard to Nexo's Earn product in several states. At the time of writing, the companys site claims to be in full compliance with all applicable global and local regulations and standards for the areas it operates in and lists the licenses it has to operate. Crypto finance institution BlockFi was charged $100 million in similar penalties in February 2022 for not being properly registered to provide investment services, and the Coinbase crypto exchange agreed to pay a $50 million penalty to the New York State Department of Financial Services for allegedly violating anti-money laundering laws earlier this month. According to the SECs order, in or around June 2020, Nexo began to offer and sell the EIP in the United States. And part of that reality is that crypto assets are not exempt from the federal securities laws, said Gurbir S. Grewal, Director of the SECs Division of Enforcement. Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. A Nexo booth at the Bitcoin 2022 conference. Meanwhile, Blockfi wasnt the only crypto firm targeted by securities regulators in the U.S., as Kentucky and Alabama sent warnings to the crypto lending company Celsius over interest-bearing accounts. According to the SEC's order, in or around June 2020, Nexo began to offer and sell the EIP in the United States. It's the promotion, facilitation, and exploitation of others that are troublesome - specifically, the trafficking of women and children for prostitution to and within the country has become a problem. And last year, Coinbase nixed the U.S. launch of its Lend program, which would have offered high-yield crypto accounts to users, after the SEC threatened to treat the products as securities. Our team and legal advisers are working around the clock to develop solutions for our U.S. clients that will make the earn interest product 2.0 as widely accessible as possible and compliant with the new regulatory realities, Nexo Josh concluded. Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable.. He graduated from higher legal education on the air of BNT. The U.S. Securities and Exchange Commission (SEC) charged crypto lender Nexo with failing to register the offer and sale of its Earn Interest Product (EIP). All "statuses" are subject to state limits. At the time, I did the bnb swap on TrustWallet and the fees were just insane but finally after spending some time and all the fees, I was able to get them on my nexo account. Digital-asset firm Nexo Capitalwill pay $22.5 million to the Securities and Exchange Commission. The company ceased offering the product to new investors after the SEC announced similar charges against another company in February 2022. Nexo said it had been in talks with both state and federal regulators in the U.S., but these had come to a "dead end." The company did not provide many specifics about these discussions, but said . Additional reporting by Hannah Lang in Washington and Jonathan Stempel in New York Got a confidential news tip? Bitcoin.com does not provide investment, tax, legal, or accounting advice. As of March, Nexos interest product had 112,000 U.S. investors, who had put in $2.7 billion in assets, according to court documents. STAY CONNECTED State-regulated online poker with real money poker games such as cash games and tournaments is legally . We provide legal solutions for the various situations that may arise in business matters, offering the client legal alternatives that optimize the commercial and practical scope of the organization. Check out the Celsius review for details. "It is now unfortunately clear to us that despite rhetoric to the contrary, the US refuses to provide a path forward for enabling blockchain businesses and we cannot give our customers confidence that regulators are focused on their best interests.. And they're not on the Financial Services Register. With more than 5 billion dollars in assets under management and more than 5 million users, it has proved its merit as an excellent platform for borrowing and earning on savings.. With the Nexo card, Nexo has expanded its practical value as a medium of exchange and payment. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Securities Regulation The SEC Settles with Kraken for $30 Million over Crypto Asset Staking-As-A-Service Program By Joseph Mayo, LL.M. After Blockfis penalties were handed down by the U.S. securities regulator, the crypto lending firm Nexo has announced: big savings news for U.S. customers., According to the Reddit moderator of the subreddit r/nexo, Nexo Josh, U.S.-based Nexo customers will be seeing some new changes in regard to the Nexo savings program that bears interest. "Our decision comes after more than 18 months of good-faith dialogue with U.S. state and federal regulators which has come to a dead end," the company said in a blog post. Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. Branches of the U.S. government. And last year, the agency announced $100 million in penalties against BlockFi, a crypto lender that also advertised big returns for customers. The office did not disclose when it provided those warnings. The SEC has been targeting such offerings by crypto firms over the last year, bringing its first charges against a subsidiary of BlockFi Inc for selling a similar product in February 2022. "Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately," said Attorney General James. James seeks to compel Nexo to forgo the revenue from its Earn Interest Product crypto deposit accounts and provide financial restitution to customers who used it, according to the complaint. In a statement, Nexo looked to differentiate itself from other platforms that have run into financial problems this year. Prostitution is legal in Argentina as long as the participants are over the age of 18. Following the U.S. Securities and Exchange Commission (SEC) charging the crypto lending platform Blockfi with failing to register its retail crypto lending product and fining the firm $100 million, the crypto lender Nexo has announced it will no longer allow U.S. citizens to earn interest on new savings wallet top-ups. TV-Y7. The firm voluntarily stopped offering its interest program to new U.S. investors, the agency said, and ceased paying interest on new funds added to existing accounts. Learn when to use each. Unlike many of its peers, Nexo has weather the crypto turmoil well and from my point of view, it seems as a very legit and efficient organisation. Today we are announcing the regrettable but necessary decision that Nexo will be phasing out its products and services in the United States due to a lack of regulatory clarity. In parallel actions announced today, Nexo agreed to pay an additional $22.5 million in fines to settle similar charges by state regulatory authorities. The crypto borrowing and lending platform Nexo plans to gradually cease operations in the United States over the coming months, according to a blog post on Dec. 5. Get to know about the buzz happening in your office with the "Buzz" feature. U.S. Commodity Futures Trading Commission. Its the latest legal move in a fight between regulators and crypto companies looking to offer interest-earning accounts, often insisting that they shouldnt be classified as securities. At the time, Nexo told CoinDesk that it had already "ceased the onboarding of new US clients" for its Earn product. All Rights Reserved. Will Apollo Offer THG a Route Out of Its Troubles? Nexo, however, says only one asset earns an interest rate at 36% and it does not advertise that yield in its marketing materials. The Nexo fine is the latest effort by U.S. regulators to rein in the crypto industry. 2023 Vox Media, LLC. Since Nexo launched in 2018, it has supported over 50 cryptocurrencies, operated across about 200 jurisdictions, garnered over 5 million users and processed over $80 billion, according to its website. In parallel actions announced today, Nexo agreed to pay an additional $22.5 million in fines to settle similar charges by state regulatory authorities. Nexo Josh explained that the company has voluntarily implemented changes to its earn interest product in the United States in order to comply with newly-announced guidance.. Nexo is 84.83% below the all time high of $4.63. : Use cases and examples, Navigating the world of crypto: Tips for avoiding scams, How crypto tokens (but not Bitcoin) will outperform stocks in 2023 Arcas CIO explains, Crypto lender Nexo confirms NYAG order, calls it a mix up, Judge pulls out of SBF-FTX case citing husbands law firms advisory link, Troubled crypto lender Vauld gets extended creditor protection. "We continue to see demand, particularly from young investors, for access read more. Company. It Was the Banks Undoing, Stocks Bounce Back; Bond Yields Climb on Fed Bets: Markets Wrap. Nexo, which was formed in the Cayman Islands in 2018, is one of a large group of prominent crypto companies that promised to generate interest for customers by investing their crypto savings for them. As a subscriber, you have 10 gift articles to give each month. Weed the People: Seven more states could legalize cannabis in 2023. getty. The transformation of value in the digital age. Eight states announced on Monday they're bringing actions against the crypto-lending platform Nexo Group in connection with its unregistered, interest-bearing cryptocurrency product. 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, said SEC Chair Gary Gensler. Set meet Californias cease-and-desist letter alleges that Nexo has offered and sold unqualified securities through its crypto interest account program, Earn Interest Product, to U.S.-based users. No physical presence is required. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. 3,815 Followers, 181 Following, 254 Posts - See Instagram photos and videos from Nexo Legal (@abogadasnexolegal) abogadasnexolegal. "Our decision comes after . The company says some of its most popular assets, like Bitcoin, only earn yields in the single digit percentages. New top-ups to your [Nexo] savings wallet, as of today, will not earn interest until the restructuring of the earn interest product, the message from Nexo Josh said. We can now focus on what we do best build seamless financial solutions for our worldwide audience, he added. Federal laws and regulations Understand impeachment. All our new Knights demonstrate their prowess: CLAY, AARON, ALEX, and LANCE. California, New York and six other state securities regulators sued cryptocurrency lender Nexo on Monday, saying its interest-bearing accounts amount to unregistered securities. Sam Bankman-Fried accused of sending a $40 million crypto bribe to Chinese officials. Nexo had already off-boarded Earn clients in New York and Vermont at those states' regulators' insistence, a blog post said. Crypto lender Nexo said Monday it would stop offering products and services in the U.S. in the coming months, would immediately halt access to its Earn Interest Product in eight states and is no longer signing up any new U.S. customers to the Earn product. Nexo plans to restructure the product and it will be introduced as the earn interest product 2.0 version. 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