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- Nexo resumes work in the United States after paying $45 million to the SEC for an unregistered cryptocurrency lending product.
- U.S. clients can access high-yield crypto savings, asset-backed credit lines, and advanced trading tools.
- After the recent court case win for the company, the Nexo platform is aiming for more growth and addressing issues that it faced in the US.
Nexo, a leading cryptocurrency lending company, decided to re-enter the US market after suspending its services for two years. The firm shut down after paying a settlement to the U.S. Securities and Exchange Commission (SEC). Nexo, faced sanctions in 2023 when it was fined $45 million for launching an unregistered product related to crypto lending for US investors.
In a statement on Monday, Nexo declared that it extended its services to both retail and institutional clients in the United States. These include high-yield crypto savings accounts, credit lines backed by financial assets, various enhanced trading tools, and access to institutional financing. The company is focused on overcoming past regulatory issues and is interested in strengthening its position in the US market.
Ongoing Legal Challenges
Nexo’s return comes after the company reached a major legal agreement with the SEC after the agency accused it of not registering its Earn Interest Product, a popular lending platform that it offers to U.S users. Although Nexo did not avail itself of an opportunity to admit or deny the allegations. The company agreed to the payment of the fine to hash out the matter. This helped the firm to go ahead and implement its strategies aimed at re-entering the operation in the United States.
Besides the SEC settlement, Nexo has also faced other legal issues. By March 2024, Reuters reported that the company sought to regain $3 billion linked to a non-active criminal case. This investigation also affected the company’s efforts to open the listing on the US stock exchange. And a sponsorship deal with a famous football club. Nexo officials have claimed that the investigation negatively impacted the firm’s reputation and investor value.
The offices of Nexo were searched at the request of Bulgarian authorities in relation to money laundering, tax evasion, and computer fraud attempts from 2018 to 2023. The company has always refuted the allegations. And has not been found guilty of any wrongdoing. Nevertheless, it has been able to sustain its market share, and as of now, Nexo is in the process of seeking back to the United States market.
Nexo’s Path to Expansion
A significant development happened in December of the year 2023. When the Bulgarian Prosecutor’s Office decided to close the criminal case against Nexo. Specifically, the investigators could not identify any possible money laundering or tax evasion, or any other criminal activity. This closure paved the way for the firm to start over and establish itself again with a new approach of growing its services in the U.S and other countries.
Therefore, Nexo’s re-entry into the US market shows its ability not to back down from legal challenges. The firm is focused on growth and expansion. As well as providing stellar services in the area of cryptocurrency lending. Which is still considered fairly competitive.
