Loan Platform Nexo Settles with Ohio Securities Department for $22.5 Million

03/01/2023 22:31 • Crypto & Markets • 68 views

It is reported that the Ohio Securities Department of the United States announced that it had joined the settlement agreement of the loan platform Nexo with US $22.5 million. Nexo agreed to pay US $22.5 million to settle the charges with Ohio and other states of the United States, the District of Columbia, Puerto Rico and the United States Virgin Islands (pay US $424528.30 to each jurisdiction) to solve the violations. It is said that Nexo’s EIP product promised to pay investors encrypted interest, and the product failed to comply with the national securities registration requirements, depriving investors of the important information needed to understand and evaluate the investment EIP risk. As of July 31, 2022, there were 2327 Ohio EIP accounts with a value of 15858147 dollars. Nationwide, Nexo has 93318 EIP investors in the United States, with a total asset value of US $802.26 billion.

Ohio Securities Department of the United States joined the settlement agreement of the loan platform Nexo with US $22.5 million

Interpretation of the news:

The Ohio Securities Department has announced that it will receive $22.5 million from loan platform Nexo as part of a settlement agreement with multiple states and territories in the United States. Nexo allegedly failed to comply with national securities registration requirements for its EIP product, which promised to pay investors encrypted interest. The lack of information deprived investors of the tools to understand and evaluate the risks associated with investing in the EIP product. The settlement will provide $424,528.30 to each jurisdiction involved.

The violations were uncovered after Ohio Securities Department investigated the lack of registration, and subsequently joined forces with other states and territories in the United States that had similar concerns. As of July 31, 2022, there were 2,327 Ohio EIP accounts valued at $15,858,147, while Nexo had 93,318 EIP investors across the United States with a total asset value of $802.26 billion.

This settlement marks an important step towards ensuring that investors are provided with adequate and accurate information regarding investment products, and that companies operating in the financial industry follow established regulations. The enforcement of these requirements helps to protect investors and maintain fair and equal access to the financial market.

In conclusion, the settlement between Nexo and the Ohio Securities Department highlights the importance of compliance with securities registration requirements and the consequences of failing to do so. The settlement underscores the role of regulatory agencies in enforcing the law to protect investors and promote fair market practices. It is a reminder to companies operating in the financial industry to remain vigilant of their compliance and reporting obligations to avoid penalties and legal repercussions.

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