Nexo Crypto Lender Resolves Multistate Lawsuit with $22.5M Settlement – Here’s What Happened

crypto lender nexo Ohio has settled a settlement with several US states for $22.5 million, after becoming the latest state regulator to join the Division of Securities.

The firm, which is led by Bulgarian entrepreneur Kosta Kantachev, will pay $424,528.30 for each jurisdiction that joins the agreement, which includes several US states, the District of Columbia, Puerto Rico and the US Virgin Islands.

Overall, the settlement amounts to $22.5m for the cryptocurrency lending and savings firm.

one in Press release In a Tuesday release, Ohio Securities Commissioner Andrea Seid said all firms dealing with digital assets must comply with Ohio securities laws.

“In partnership with NASA and other state securities regulators, we will continue to protect Ohio investments and ensure that companies operating here comply with our securities laws,” said Commissioner Seid.

The press release states that Nexo has agreed to stop paying interest on existing EIP accounts as of April 1 this year. The only exception would be when the EIP is “reasonably qualified for sale in Ohio.”

$45 million in settlements

Following Nexo in January came the news of Ohio and several other states joining the protocol. agreed to settle with the SEC for $22.5 million, and with the North American Securities Administrators Association (NASAA) for another $22.5 million.

In other words, the total settlement of Nexo is $45 million.

Subsequently, Gurbir Grewal, director of the SEC’s enforcement division, pointed out that digital assets “are not exempt from federal securities laws.” He accused Nexo of failing to register its Earned Interest Product (EIP) with the agency, but also noted that Nexo had agreed to stop its offering and sale of EIPs in the US.

Grewal said at the time, “If you are offering or selling products that constitute securities under well-established laws and legal precedent, then no matter what you call those products, you We are subject to those laws and we expect to comply.”

The news of the agreement with the two regulators was also shared by Nexo, which called it “a historic resolution.”