The US Suspends the Investigation against Nexo, the Company reached a Historic Settlement

Business | January 20, 2023, Friday // 09:43
Bulgaria: The US Suspends the Investigation against Nexo, the Company reached a Historic Settlement @Nexo

Nexo has agreed to pay $45 million to US regulators and will cease unregistered offering of crypto products, reported the United States Securities and Exchange Commission, as quoted by BNT.

Nexo has reached a definitive settlement with the US Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), consisting of all 50 US states and three territories, the New York Attorney General (NYAG), The Texas Department of Banking, the Alaska Division of Banking and Securities, and the Washington Division of Consumer Services, the company said.

There have been no allegations by US federal regulators that Nexo has engaged in fraudulent or deceptive business practices, or that Nexo's customers have been harmed or misled about the company's financial condition. It also ends all proceedings against the company in eight US states, which are all administrative in nature.

The only finding by state regulators of non-compliance with legal requirements by the company is in relation to a lack of the necessary registration for a US offering of Nexo's interest-bearing product accepted as securities.

With this, US regulators have concluded their comprehensive inspections of Nexo's activities concerning the company's business.

"We are extremely pleased with this comprehensive and final decision, which unequivocally puts an end to all speculative allegations regarding Nexo's relationship with US regulators and institutions. Unfortunately, even Bulgarian state bodies and institutions did not take heed and continue to abuse the American name, and the reactions in connection with these ugly actions of creating an alibi are yet to come. The clumsy insinuations of an ‘international’ element in the actions against Nexo to justify brazen arbitrariness against our company ‘NDS’ EOOD and our over 600 employees in Bulgaria, almost at the request of ‘Euro-Atlantic partners’, have been exposed by irrefutable facts. In addition, an attempt to attach the action against Nexo by timing it on a day to coincide with another Europol action against call centers in Bulgaria, Serbia and Cyprus using cryptocurrencies was foiled by the official confirmation of EUROJUST (EU Agency for criminal justice cooperation) that the two events are unrelated. However, the organizers achieved quite a few of their political goals. All participants and their accomplices during the failed attempts to kill a successful and growing business will be held accountable for all damages," said Antoni Trentchev, co-founder of Nexo.

Trentchev continued: "Regardless of what has happened, the Nexo team remains fully focused on what we do best – building innovative and secure financial services for our millions of customers around the world. We remind you that Nexo is among the very few companies unaffected by the wave of bankruptcies in the crypto industry over the past 12 months - in itself the clearest testament to the sustainability of our business and model".

"We thank the state regulators involved in the process for their objectivity and professionalism, and for their efforts and dedication to doing what they believe is in the best interest of American citizens. Values such as transparency, entrepreneurial freedom and adherence to the highest professional, ethical and legal standards are fundamental to this nation; values that Nexo fully recognizes and wholeheartedly follows. We are grateful to our law firm Schulte Roth and Zabel LLP for carrying out this most constructive dialogue with US state regulators, as well as with the Attorney General of New York, which led to this most fair and balanced result," added Trentchev.

Nexo, recognized in the US as a global innovator similar to Uber and Airbnb, provides revolutionary solutions in a fast-growing and dynamic industry. By the very nature of innovation and companies like Nexo, they don't fit into existing frameworks. This implies, in good faith cooperation with the institutions and in the protection of the interest of consumers, that companies like Nexo participate in the development and improvement of the existing regulatory frameworks.

Kosta Kanchev, co-founder of Nexo, added: "We are confident that a clear, sustainable and predictable regulatory framework will be formed in the United States very soon, so that Nexo and similar companies can offer more and more value-added products in accordance with the legal and other regulatory requirements. Thus, the United States will once again reassert itself as the world engine of innovation that it has been for decades."

The agreements, the culmination of almost two years of work, are a clear example of Nexo's principles, on the basis of which we are building a transparent, predictable and sustainable business model that has stood the test of time in the market. The full cooperation provided to US regulators is greatly appreciated by them. The Nexo team, as always, is committed and unwavering in its commitment to maintain the highest global standards in terms of regulatory and KYC/AML/CTF compliance, customer and investor protection. Thus, Nexo, through its financial stability and growth, continues the development and global consolidation of the fintech industry,” they said from the company.

Nexo is a leading global regulated digital asset management institution. The company's mission is to provide a full range of cryptocurrency-based financial services and products. These include advanced trading solutions for retail and institutional clients, liquidity aggregation, tax-efficient asset-backed credit lines, an interest-bearing product, accompanied by the highest level of custodial security on the Nexo platform. In early 2022, the company founded its investment division Nexo Ventures, which already has more than 60 portfolio companies. Nexo manages over $2.3 billion in assets for over 5,000,000 users in 200+ jurisdictions and has processed more than $130 billion since its founding in 2018.

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Tags: crypto, nexo, US, Trentchev
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