13 February 2023- The Pennsylvania Department of Banking and Securities announced that it has joined 53 other jurisdictions and the United States Securities and Exchange Commission in a $45 million settlement with Nexo Capital Inc. (Nexo).
Over the past year, several state securities regulators, as members of the North American Securities Administrators Association, found that Nexo violated securities registration provisions through its sale of the Nexo Earned Interest Product. As part of the settlement, Nexo will pay Pennsylvania a fine of $424,528.30 and will cease offering and selling the Earned Interest Product or accepting further investments in it until such activities are compliant with applicable state and federal securities laws.
According to NASAA, Nexo is a Cayman Islands corporation established in 2018 that provides virtual currency-related financial services to retail and institutional borrowers in the United States, including trading, borrowing, and lending services. According to the settlement, Nexo must notify all its remaining U.S. investors to remove their virtual assets from Nexo’s platform by April 1, 2023. Nexo will pay $22.5 million to the settle SEC charges, and $22.5 million in fines to settle similar charges by state regulatory authorities.
The Department of Banking and Securities urges Pennsylvanians to always investigate before investing their money and time. For more information on researching companies and investments, visit the department website or call 1.800.PA.BANKS.