Nexo is re-entering the U.S. market two years post a $45 million SEC settlement. Retail and institutional clients can access a range of crypto products. The company faced several legal challenges but saw a positive turn when Bulgarian prosecutors closed a criminal case against them, citing a lack of evidence.
Cryptocurrency lender Nexo is making a comeback in the United States, two years after resolving a significant $45 million penalty with the U.S. Securities and Exchange Commission (SEC). This comes as the firm aims to provide its services across the U.S. market once again, having previously faced regulatory challenges that halted its operations.
In a recent announcement on X, Nexo stated that both retail and institutional clients in the U.S. can now access an array of their financial products. These include high-yield cryptocurrency savings accounts, asset-backed credit options, advanced trading, and liquidity solutions tailored for institutional investors. This expansion represents another chapter for the crypto lender after their regulatory hurdles.
The backdrop of Nexo’s return is marked by its settlement with the SEC in January 2023. The company was charged by the SEC for not registering its Earn Interest Product, a crypto lending service that was aimed at U.S. investors. However, Nexo did not admit to any wrongdoing resulting from the fine, which left many questions unanswered.
Additionally, Nexo encountered various legal issues over the years. A news report from early 2024 indicated that Nexo was attempting to recover $3 billion linked to a halted criminal investigation. This situation had impacted their intended stock market listing and a prospective sponsorship deal with a soccer team. Nexo claimed that the ongoing inquiry had significantly tarnished its reputation and diminished shareholder value.
In January 2023, the firm faced a raid by prosecutors amidst accusations of money laundering, tax offences, and computer fraud occurring from 2018 to early 2023. Nexo’s management has vehemently denied all allegations thrown their way.
A more promising turn of events came in December 2023, when the Bulgarian Prosecutor’s Office announced that the criminal case against Nexo had been closed. Investigators found no substantial evidence of money laundering or other financial crimes, offering some relief to the crypto lender as they aim to regain footing in the competitive U.S. market.
