- Nexo discontinues its Earn Interest product to customers in the US.
- The decision comes after paying $45 million in penalties to American regulators.
- In a press release, Nexo stated that the users will receive interest payments up until April 1.
Nexo Capital, a cryptocurrency lending company, is set to discontinue delivering its yield-bearing Earn Interest product to customers in the US approximately a month after opting to pay $45 million in fines to American regulators.
An update for our U.S. clients.https://t.co/wRiDOPKEqg— Nexo (@Nexo) February 11, 2023
Nexo announced that the product would be phased out on April 1 in a blog post that was posted on February 10. However, customers can use the service to lend Nexo some cryptocurrency in exchange for daily compounding rates.
Nexo’s January 19 settlements with the Securities and Exchange Commission (SEC) and the NASAA, the North American Securities Administrators Association, led to the decision to stop offering Earn.
Nexo was under investigation by the NASAA, SEC, and at least seventeen state securities regulators for failing to get the offer registered and the sale of its Earn product approved. In exchange for a $22.5 million fine, Nexo agreed to stop selling its Earn product to American investors. A further $22.5 million in fines were also paid to settle state authorities’ complaints.
As stated in a Nexo press statement, Earn users will receive interest payments until April 1. A fixed-term product will become available to subscribers on the termination date, and Nexo recommends users “start planning the withdrawal of your funds.” According to the firm, other Nexo services and products are not going to be affected.