Got this e-mail yesterday:
Dear #######
"We are pleased to announce that Nexo has reached a landmark resolution with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), consisting of all 50 U.S. States and three territories, the Attorney General of New York, the Texas Department of Banking, the Washington Consumers Services Division and the Alaska Division of Banking and Securities.
Important characteristics of the settlement with U.S. Federal regulators include:
The settlements are on a no-admit-no-deny basis.
The sole allegation has been that Nexo’s Earn Interest Product (EIP) was an unregistered securities offering.
This closes all multi-year-long inquiries into Nexo, looking at various aspects of the business, following the company’s voluntary decision to stop offering its EIP in the U.S., Nexo’s proactive exit from the U.S. market in an orderly fashion, and an agreement to pay a monetary penalty, payable over a 12-month period.
The U.S. Federal Regulators do not contend that Nexo engaged in any fraud, or misleading business practices, or that any Nexo customers have been harmed or misled about Nexo’s financial health.
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We are content with this unified resolution which unequivocally puts an end to all speculations around Nexo’s relations to the United States. We can now focus on what we do best - build seamless financial solutions for our worldwide audience.
We thank the commissioners involved for their time, effort, and dedication in doing what they believe is in their constituents’ best interests and in line with the American values of transparency, financial freedom, and adherence to the highest professional and legal standards that have built this great nation and which Nexo deeply relates to. We are grateful to our legal advisors at Schulte Roth and Zabel LLP for facilitating a most constructive dialog with the U.S. federal and state regulators, as well as the New York Attorney General’s Office, which helped us secure this most favorable of outcomes.
Antoni Trenchev
Co-founder of Nexo
It is Nexo’s belief that the company has been recognized for what it truly is - a pioneer, like Uber and Airbnb, providing disruptive solutions in a fast-paced environment. As innovators do not quite fit into existing provisions, constructive dialogue for the enhancement of the prevailing regulatory frameworks is of paramount importance.
We are confident that a clearer regulatory landscape will emerge soon, and companies like Nexo will be able to offer value-creating products in the United States in a compliant manner, and the U.S. will further solidify its position as the world’s engine of innovation.
Kosta Kantchev
Co-founder of Nexo
Nexo cooperated fully with the U.S. government’s inquiries since day one. These resolutions are the pinnacle of almost two years of work and clearly show that Nexo is not a problem but part of the solution.
It is also an extension of Nexo’s philosophy of building a robust and sustainable business model, which has stood the test of time and is part of its devotion and unwavering commitment to uphold the highest standards in terms of complying with its regulatory and KYC/AML/CTF obligations, protecting clients and investors, and ensuring financial stability and growth of its operations and the industry as a whole.
Thank you for being on this journey and for growing with us.
Yours humbly,
The Nexo Team"
Looks to me like the SEC nabbed another excellent platform and took it's services away from the US.
I then found this tweet:
https://twitter.com/SECGov/status/1616205929589968952
- SECGov
Just gross.
Meanwhile, we can sit back and collect 20% on HBD, not to mention the other various mid-high APRs on our assets here on HIVE.
Seems like a no-brainer to me.