Nexo Settles Charges with Ohio Securities Department for $22.5 Million

It is reported that the Ohio Securities Department of the United States announced that it had joined the settlement agreement of the loan platform Nexo with US…

Nexo Settles Charges with Ohio Securities Department for $22.5 Million

It is reported that the Ohio Securities Department of the United States announced that it had joined the settlement agreement of the loan platform Nexo with US $22.5 million. Nexo agreed to pay US $22.5 million to settle the charges with Ohio and other states of the United States, the District of Columbia, Puerto Rico and the United States Virgin Islands (pay US $424528.30 to each jurisdiction) to solve the violations. It is said that Nexo’s EIP product promised to pay investors encrypted interest, and the product failed to comply with the national securities registration requirements, depriving investors of the important information needed to understand and evaluate the investment EIP risk. As of July 31, 2022, there were 2327 Ohio EIP accounts with a value of 15858147 dollars. Nationwide, Nexo has 93318 EIP investors in the United States, with a total asset value of US $802.26 billion.

Ohio Securities Department of the United States joined the settlement agreement of the loan platform Nexo with US $22.5 million

Interpretation of the news:


Nexo, a loan platform that promises encrypted interest payments to investors, has settled charges with the Ohio Securities Department for $22.5 million. In addition to Ohio, Nexo has also agreed to pay the same amount to other states of the United States, the District of Columbia, Puerto Rico and the United States Virgin Islands. The payment will be distributed equally among these jurisdictions to solve the violations and compensate the affected investors.

The charges against Nexo date back to its EIP (Earn Interest Program) product that failed to comply with the national securities registration requirements. This deprived investors of important information necessary to evaluate the investment EIP risk. With 93,318 EIP investors in the United States and a total asset value of $802.26 billion, the violation has affected a significant number of investors nationwide.

The settlement with the Ohio Securities Department is meant to address this violation and ensure that investors are compensated for the harm they suffered as a result of these violations. The fact that Nexo agreed to settle for $22.5 million indicates the severity of the violation and the need for a strong response from the authorities.

Although the settlement covers only one jurisdiction, it is expected that other states would follow suit and demand similar compensation from Nexo. The settlement agreement is also expected to serve as a warning to other loan platforms and companies that operate in the cryptocurrency market to adhere to the national securities registration requirements and ensure that investors are adequately informed of the risks involved in their investments.

In conclusion, the settlement agreement between the Ohio Securities Department and Nexo is an indication that authorities are taking seriously the need to regulate the cryptocurrency market and protect investors from fraudulent practices. With the increasing popularity of digital platforms, it is important that the authorities remain vigilant and act swiftly to punish companies that violate securities regulations.

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