Crypto

Nexo Agrees To Pay $45 Million In Penalties

Nexo, a leading crypto-lending platform, has reached an agreement with the United States Securities and Exchange Commission (SEC) to pay $45 million in penalties for conducting an unregistered securities offering.

The SEC’s action against Nexo is the latest in a string of enforcement actions against companies in the crypto-asset industry for violations of federal securities laws. The regulator has made it clear that it views many digital assets as securities, and that companies that offer or sell these assets must comply with federal securities laws.

According to the SEC, Nexo conducted an unregistered securities offering in 2018 and 2019, during which it raised $48.4 million from over 5,000 investors. The SEC alleges that Nexo did not register the offering with the agency, and did not qualify for an exemption from registration.

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In addition to paying the $45 million penalty, Nexo has agreed to cease the unregistered offering and to register the securities that were sold in the offering with the SEC. The company will also be subject to periodic reporting requirements for a period of five years.

This enforcement action serves as a reminder that companies in the crypto-asset industry must comply with federal securities laws, even if they are operating in a decentralized and decentralized manner. The SEC has made it clear that it will take action against companies that violate these laws, and that it views many digital assets as securities.