Home » Ohio Joins the Club Against Nexo

Ohio Joins the Club Against Nexo

by Hans Lipper

The Ohio Division of Securities has joined the $22.5 million multistate settlement against the cryptocurrency lending platform Nexo. US regulators have accused the firm of failing to comply with local requirements when offering Earn Interest Products (EIP) to US consumers. The North American Securities Administrators Association (NASAA) and the SEC have alleged that Nexo did not disclose vital information about the products and failed to outline the risks for investors. Over 2,300 Ohio residents had joined the program as of the end of July 2022 and collectively distributed more than $15 million.

Nexo has agreed to pay $22.5 million to resolve the issues with the regulators of Ohio and the other states, as well as the authorities of Puerto Rico, the US Virgin Islands, and the District of Columbia. It has also promised to cease the offering in Ohio and stop paying interest on all existing EIP accounts on April 1, 2023. The local regulator has advised consumers affected by Nexo’s activities or those who feel they have become victims of investment fraud to file a complaint with the Division online.

In January, Nexo voluntarily agreed to pay $45 million in penalties to numerous entities. It transferred half of the sum to the SEC, while the remaining $22.5 million were distributed to at least 17 separate state securities regulators. SEC Chairman Gary Gensler has explained that Nexo was charged for failing to register its EIP program, not for operating it. He has further stated that the crypto company must comply with public policies, and where they do not, they will be held accountable. As a result, Nexo has agreed to cease its unregistered lending product as to all US investors.

Popular News

Leave a Comment

Ads Blocker Image Powered by Code Help Pro

Please support us to continue to provide free news for everyone

We have detected that you are using extensions to block ads. Please support us by disabling these ads blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock