About a month after deciding to pay $45 million in fines to American regulators, cryptocurrency lending company Nexo Capital is about to stop offering its yield-bearing Earn Interest Product to consumers in the US.
In a blog post published on February 10 by Nexo, the company stated that the product would be discontinued as of April 1. Through the service, customers might lend some cryptocurrency to Nexo and receive daily compounding rates in return.
The decision to stop providing Earn was made as a result of Nexo’s Jan. 19 settlements with the Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA). For failing to register the offer and sale of its Earn product, Nexo was the subject of an investigation by the SEC, NASAA, and at least 17 state securities regulators.
Nexo agreed to stop marketing its Earn product to American investors in exchange for a $22.5 million fine, and an additional $22.5 million in fines were paid to resolve complaints from state authorities. Despite agreeing to a cease-and-desist order preventing it from breaking securities law provisions, Nexo did not admit or dispute the SEC’s conclusions.
Users of Earn will continue to receive interest payments up until April 1 according to Nexo’s release. On the termination date, a fixed-term product will be unlocked for subscribers, and Nexo advises users to “start arranging the withdrawal of your funds.” According to the company, other Nexo services and products won’t be impacted.
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