Nexo Cuts Off All US Affiliates from Its Earn Interest Product
- The decision was in line with the recent settlement with major US regulatory bodies.
- Previously, Nexo offered up to 36% per year on their crypto staking.
Nexo, a blockchain-based lending platform, has announced that it will no longer be offering its Earn Interest Product to US clients, which includes US and residents, from April 1, 2023.
The firm made the declaration via its official website last Friday, noting that the decision was in line with the recent settlement with major US regulatory bodies.
The agencies included the Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), the New York Attorney General, the Texas Department of Banking, the Washington Consumers Services Division, and the Alaska Division of Banking and Securities.
Nexo noted that between now and April 1, customers’ balances on Nexo will continue to receive the same interest rate as that of the date of Nexo’s landmark resolution in the US. Nonetheless, US clients must take out their funds as soon as possible.
However, accounts that have been wrongfully flagged as US-based must update their verification details by providing a document from a list of acceptable ones, including a bank or card statement, utility bill, tax return, tenancy agreement, and insurance statement.
Notably, Nexo has been under FBI scrutiny due to a $4 billion gap of investor funds in its balance sheet, including unlawful lending in return for collateral and allegations of misappropriation of customers’ assets and commodities.
Last month, prosecutors and investigators from the National Investigation Service raided the Bulgarian offices in the capital city of Sofia for alleged money laundering and breaches of international sanctions against Russia.
The probe into the company’s activities came live after foreign services detected suspicious transactions reportedly aimed at bypassing sanctions imposed by the European Union, the UK, and the US on Russian banks, companies, and citizens.