Here is When Nexo Will Discontinue its US Earn Interest Product
Nexo, a crypto lending platform, has decided to discontinue its Earn Interest Product for all clients residing in the United States as of April 1st, following a settlement with the Securities and Exchange Commission (SEC).
In a blog post, the company advised its US clients to withdraw their funds before the aforementioned date. However, no other Nexo services will be impacted by this change.
Clients who have taken out loans or have collateralized assets will be given enough time and notice to repay the loans and retrieve their assets.
Non-US clients who think their accounts have been wrongly flagged must update their verification information by submitting documents such as bank statements or utility bills.
Nexo has agreed to pay a settlement of $45 million after being accused by the SEC of not registering the retail crypto asset lending product, which was first introduced in the United States in 2020.
Without accepting or denying the charges, Nexo consented to an order that prohibits it from breaking the registration provisions under the Securities Act of 1933.
The company stated that this move “reflects our belief that the creation of clear regulatory frameworks is the best way to protect the crypto industry and bring it into the mainstream safely and in compliance with regulations.”