Cointime

Download App
iOS & Android

Ohio Regulator Joins the Nationwide Settlement Against Crypto Lending Platform Nexo

Cointime Official

The Ohio Division of Securities added its name to the $22.5 million multistate settlement against the cryptocurrency lending platform Nexo. 

The Ohio Division of Securities has issued a consent order against Nexo Capital, a Cayman Islands-based corporation that provides cryptocurrency-related financial services. Nexo’s Earn Interest Product (EIP) promised to pay investors interest on cryptocurrency deposited into a Nexo “crypto interest account.” However, during an investigation by a working group of state securities regulators, it was discovered that Nexo had failed to comply with state securities registration requirements, depriving investors of important information necessary to understand and evaluate the risks of investing in the EIP.

As a result, Nexo has agreed to pay $22.5 million to settle the allegations with Ohio and other U.S. states, including Puerto Rico and the U.S. Virgin Islands. It will pay $424,528.30 per jurisdiction to resolve the violations. Additionally, Nexo has agreed to stop offering and selling the EIP in Ohio and will cease paying interest on all existing EIP accounts on April 1, 2023, unless the EIP is properly qualified for sale in Ohio.

As of July 31, 2022, there were 2,327 Ohio EIP accounts with a value of $15,858,147. Nationally, Nexo had 93,318 EIP investors in the U.S. with a total asset value of $800.26 million. In response to the settlement, Securities Commissioner Andrea Seidt stated that “all financial services companies, including those offering services for crypto assets, must comply with Ohio’s securities laws” and that they will continue to protect Ohioans’ investments and ensure that companies operating in Ohio follow their securities laws.

Comments

All Comments

Recommended for you

  • Bitcoin mining difficulty exceeds 100T, setting a new record high

    the difficulty of Bitcoin mining has surpassed 100T, reaching a new historical high. 

  • BTC falls below $68,000

    the market shows that BTC has fallen below $68,000 and is currently trading at $67,991.33, with a 24-hour drop of 1.02%. The market fluctuates greatly, so please be prepared for risk control.

  • BTC falls below $68,500

    market shows BTC has fallen below $68,500 and is currently trading at $68,446, with a 24-hour increase of only 0.02%. The market is volatile, please be prepared for risk control.

  • ETH/BTC exchange rate fell below 0.0356, hitting the lowest level since the 21-year bull peak

    market data shows the ETH/BTC exchange rate has fallen below 0.0356, currently at 0.03557, with a 24-hour decline of 0.81%, continuing to reach the lowest level since the bull market peak of 21 years ago. The market fluctuations are significant, so please be prepared for risk control.

  • AAVE drops below $130

    market shows that AAVE has fallen below $130 and is now reporting at $129.99, with a 24-hour drop of 1.87%. The market is fluctuating greatly, so please be prepared for risk control.

  • BTC falls below $68,500

    market shows BTC has fallen below $68,500, now trading at $68,486.02, with a 24-hour decline of 0.02%. The market is volatile, so please be prepared for risk control.

  • BTC breaks through $69,000

    the market shows BTC breaking through $69,000, currently reporting at $69,001.99 with a 24-hour decline of 0.03%. The market is experiencing significant fluctuations, please be prepared for risk control.

  • Bot swarm

    Pundits have made claims about the narratives that will drive crypto forward into Valhalla and beyond for the better part of this halving cycle. One such claim is that AI and blockchain will have a symbiotic connection; our digital compatriots' preferred currency will naturally tend toward digital. Unsurprisingly, this hypothesis is proving true before our very eyes in real-time.

  • World's First ZK-Backed Digital Identity Launched in Buenos Aires for 3.6M Eligible Citizens

    Today, the Government of the City of Buenos Aires announced the integration of QuarkID, a ZKsync-powered decentralized identity solution, into its miBA platform.

  • BTC falls below $68,000

    the market shows that BTC has fallen below $68,000 and is now trading at $67,931.33, with a 24-hour drop of 2.7%. The market is fluctuating greatly, so please be prepared for risk control.