It has been a tough week for Nexo Capital. On Sunday, Bulgarian authorities said they have evidence of Nexo customers using the platform for illegal activities, including laundering money, “tax offenses,” and financing terrorist activities. Claims the crypto lender denies.

Adding to Nexo’s headache, the Securities and Exchange Commission charged the crypto lending firm on Thursday with selling unregistered securities, saying the company failed to register with the SEC before offering its plainly named crypto lending product, “Earn Interest.”

In settling with the SEC, Nexo has agreed to cease offering the interest program and pay a $22.5 million penalty—plus an additional $22.5 million to settle with state regulators.

In its filing, the SEC says the Nexo “Earn Interest” product offering and sale did not qualify for an exemption from SEC registration, meaning Nexo was required to register its offer and sale and failed to do so.

Launched in 2018, Nexo is a British digital asset platform that loans out client funds and uses the proceeds to pay interest. In June 2020, the company began offering its “Earn Interest” product. By September 2022, however, several U.S. states—including California, Vermont, Oklahoma, South Carolina, Kentucky, and Maryland— had filed cease-and-desist orders against the company, calling the Nexo “Earn Interest” product an unregistered security.

That same month, Nexo announced the company taking a stake in U.S. federally chartered bank Summit National Bank, based in Wyoming.

Global regulators have stepped up their enforcement efforts in the wake of the collapse of several crypto firms, including Celsius and FTX. In December 2022, Nexo announced that it would wind down its U.S. operations after hitting a “dead end” with regulators.