Share this article
Ohio Joins $22.5M Multistate Settlement Against Crypto Lender Nexo
The North American Securities Administrators Association and the U.S. Securities Exchange Commission announced the settlement in January.
Updated Feb 28, 2023, 5:47 p.m. Published Feb 28, 2023, 5:42 p.m.
Make us preferred on Google
The Ohio Division of Securities has joined a $22.5 million settlement against crypto lender Nexo, it said Tuesday.
The North American Securities Administrators Association and the U.S. Securities Exchange Commission (SEC) announced in January the settlement reached with the Cayman Islands-based company.
STORY CONTINUES BELOW
The agreement was the result of a working group of state securities regulators that investigated Nexo's Earn Interest Product (EIP), where the company had told investors they can passively earn interest on digital assets.
Nexo allegedly failed to comply with state securities registration requirements and deprived investors of the important information necessary to "understand and evaluate the risks of investing in the EIP," according to the Ohio regulator’s press release.
“All financial services companies, including those offering services for crypto assets, must comply with Ohio’s securities laws,” said Securities Commissioner Andrea Seidt.
Nexo has agreed to pay $22.5 million to settle allegations with Ohio and other U.S. states as well as the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It will stop offering the EIP in Ohio until that product is "properly qualified for sale," the press release said.
In total Nexo owes state regulators and the SEC $45 million.
Read more: Crypto Lender Nexo to Pay $45M, Cease Offering EIP in Settlement With SEC
More For You
More For You
Animoca Brands clears major regulatory hurdle with new Dubai license
Animoca said the license allows it to commence operations in Dubai, offering broker-dealer services and digital asset management and investments.
What to know:
- Digital asset venture capital company Animoca Brands has won regulatory approval in Dubai.
- Animoca has been granted a Virtual Asset Service Provider (VASP) license from the Emirate's regulatory authority for the digital asset industry.
- Dubai established its Virtual Assets Regulatory Authority in 2022 to oversee the licensing and operation of cryptocurrency and crypto-adjacent companies, and has since been central to the Emirate's growth into a digital asset hub.
Top Stories
