The US Securities and Exchange Commission (SEC) has fined crypto lending firm Nexo $45 million for failing to register the offer and sale of its retail crypto asset lending product.
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The financial regulator said in a press release that Nexo's earn interest product was basically a security, which means the European firm had to register with the SEC to offer the services to US investors.
SEC Chair, Gary Gensler, said that the watchdog will continue to hold crypto firms accountable for violating federal laws. He added:
"Nexo is ceasing its unregistered lending product as to all US investors."
Nexo confirmed the resolution with the US regulators, saying it will now focus on building financial solutions for worldwide audience. Nexo's head, Antoni Trenchev, a added that the firm is "content with this unified resolution which unequivocally puts an end to all speculations around Nexo's relations to the United States."
The penalty comes after Bulgarian police raided Nexo's office in Sofia as part of an investigation into suspected money laundering. According to Siyka Mileva, a spokeswoman for Bulgaria's chief prosecutors, the law enforcement was investigating Nexo over alleged money laundering, tax crimes and other criminal violations.
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