A former high-ranking executive of the U.S. Securities and Exchange Commission (SEC) is calling out crypto lender Nexo’s multimillion-dollar settlement with the regulatory agency.
According to a new press release, Nexo has agreed to a settlement deal with the SEC for selling unregistered securities that will see it paying the regulatory body $22.5 million.
Furthermore, Nexo will also pay another $22.5 million to settle similar charges levied by state authorities.
The SEC finds that starting around June 2020, Nexo began offering its earn interest product (EIP), which was marketed as a way for traders to earn interest on their digital assets. However, the SEC deemed the EIP as a security, which falls under its jurisdiction and must be registered.
As stated by SEC Chair Gary