Crypto Lender Nexo Will Shut Down US Operations

December 07, 2022

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According to Reuters, on Monday, UK-based cryptocurrency lender Nexo announced it would discontinue operations in the United States over the next few months due to disagreements with local authorities.

Nexo said in a blog post on Monday:

“Our decision comes after more than 18 months of good-faith dialogue with US state and federal regulators which has come to a dead end.”
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Notably, Eight states filed lawsuits against the company in September of this year for varied reasons. All the complaints concerned the Earn Interest Product, including various states alleging that the company had not properly registered the product as a security.

Nexo revealed in a statement that “a number of the very state securities regulators we had been cooperating with for several months blindsided us by filing actions against us without advance notice.”

Access to the programme in those eight states will end as of tomorrow, December 6, 2022.

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However, the crypto lending company has promised its customers that they can withdraw their funds at any time and without interruption because the company has informed its payments partners of the development.

In addition, the crypto lending platform had previously stopped serving people in the states of New York and Vermont.

To clarify, Nexo stated:

“In the interim and until further notice, these clients will continue to enjoy access to all other Nexo products available in these jurisdictions.”

The company reported that the Consumer Financial Protection Bureau (CFPB) recently stated that the Agency had authority over the Earn Interest Product. In addition to the CFPB, the SEC and state regulators have also asserted their authority.

Nexo Aims To Strike Acquisition Deals

Meanwhile, Nexo has already expressed an intention to acquire the qualified assets of Celsius and the troubled Singaporean DeFi platform Vauld. Nexo has bought a stake in Hulett Bancorp and its subsidiary, Summit National Bank, both of which operate as federally chartered banks. Earlier this month, it was revealed that the digital asset lender located in Switzerland had made a $850 million offer to acquire BlockFi in July.