Crypto lending platform Nexo has just reached an agreement with US regulators after being accused of allegedly selling unregistered securities.
According to the deal, the company will pay $45 million.
The SEC, as well as the regulatory agencies of several states, have considered the Earn Interest Product (EIP) are actually securities.
The Securities and Exchange Commission claims that the company failed to register the offering under applicable law and circumvented disclosure requirements.
Gurbir Grewal, director of SEC enforcement, has commented:
“We are not interested in the labels attached to the proposals, but in their economic realities. And part of that reality is that crypto assets are not exempt from federal securities laws.”