Nexo will stop its Earn Interest Product for US clients in April

Quick Take

  • Nexo will stop its Earn Interest Product for all U.S. clients on April 1.
  • Non-US clients who believe their accounts have been wrongfully flagged must update verification details.

Following a settlement with the U.S. Securities and Exchange Commission announced last month, crypto lending platform Nexo will stop its Earn Interest Product for all U.S. clients, which include both citizens and residents, on April 1.

"We ask that you begin planning the withdrawal of your funds at a convenient time by this date," the company said in a blog post, adding that no other Nexo services will be affected. Clients with outstanding credit will be given "ample time and notice" to repay loans and withdraw collateralized assets.

Non-U.S. clients who believe their accounts have been wrongfully flagged must update verification details by providing documents such as bank statements or utility bills. 

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Nexo agreed to pay $45 million after being charged by the SEC for failing to register the offer and sale of the retail crypto asset lending product, which was first offered in the U.S. in 2020. Without admitting or denying the charges, Nexo agreed to an order to block it from violating registration provisions under the Securities Act of 1933.

The course of action "reflects our belief that the development of clear regulatory frameworks is the best way to protect the crypto industry and usher it into the mainstream safely and compliantly," the company said.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Nathan Crooks is the U.S managing editor at The Block, based in Miami. He was previously at Bloomberg News for 12 years, where he helmed coverage of South Florida after roles as a breaking news editor and bureau chief in Caracas, Venezuela. He's interviewed presidents, government ministers and CEOs, and, besides crypto, has covered major news events on the ground from earthquakes to hurricanes to the Chilean mine rescue in 2018. Nathan, a native of Clarion, Pennsylvania, holds a bachelor's degree from the University of Toronto, where he completed a specialist in political science, and an MBA from American University in Washington, D.C.

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