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Nexo shutters US Earn product a month after settling with regulators

Nexo’s earn product was discontinued after a multimillion-dollar settlement with US authorities last month.

A month after agreeing to pay $45 million in fines to U.S. regulators, cryptocurrency lending startup Nexo Capital will suspend its yield-bearing Earn Interest product for US consumers.

Nexo’s Feb. 10 blog post announced the product’s April 1 discontinuation. Loaning cryptocurrency to Nexo earned consumers daily compounding rewards.

Nexo halted Earn sales because to its Jan. 19 SEC and NASAA settlements.

Nexo was probed by the SEC, NASAA, and at least 17 state securities regulators for selling Earn without registering it.

Nexo paid $22.5 million to satisfy state regulator accusations and agreed with the SEC to stop selling its Earn product to U.S. investors.

Nexo did not accept or reject SEC findings but consented to a cease-and-desist order forbidding securities law violations.

Nexo said Earn users will earn interest until April 1. Nexo advises fixed-term subscribers to “begin preparing the withdrawal of your cash” on the termination date.

Nexo said other services and products won’t be affected.

 

 

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