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Antoni Trenchev – Co-Founder of the cryptocurrency lending platform Nexo – said the company could sue the Bulgarian government for more than $1 billion for raiding its offices and undermining its reputation.
He also refuted the rumors that members of the entity run an organized criminal group, and commit money laundering and terrorist financing operations.
‘We Will Defend our Interests’
The clash between Nexo and the Bulgarian authorities escalated after Trenchev vowed to take the dispute to court:
“Our consultants estimate the damages at over $1 billion. We were in the process of listing on the American stock exchange, and now it has to be postponed because of the reputational damage that was done to us.”
Antoni Trenchev, Source: Dnes
The executive claimed the actions of the Bulgarian prosecutors to raid the offices in the capital Sofia were “absurd, unnecessary, and a large part of them – illegal.”
The Nexo scandal happened just a day before President Rumen Radev was about to give the third and final mandate to form an acting government. Some assumed Democratic Bulgaria (a center-right political party that pledged to cope with corruption and enforce several judiciary reforms) had the best chance of receiving the mandate.
However, it was revealed that more than a dozen Nexo employees had previously made significant donations to the aforementioned party, which might have affected the President’s decision. He eventually gave the mandate to the Bulgarian Socialist Party (BSP).
Trenchev agreed with the assumption that raiding Nexo’s offices precisely that day was an orchestrated PR move from the prosecution. He also admitted knowing the leader of Democratic Bulgaria – Hristo Ivanov:
“I know Hristo Ivanov. I was part of public life in Bulgaria years ago. But I don’t see how that’s relevant. We are a handful of people in Bulgaria.”
Nexo’s boss said people are free to make donations and sees nothing wrong with those that gave away funds to Democratic Bulgaria since they have publicly registered and reported everything to the Audit Office.
Despite the confrontation, Trenchev assured that the crypto lender still has a solid base of five million customers and processes millions of transactions every day.
Paying $45 Million to the US
Apart from its issues in Bulgaria, Nexo recently agreed to pay $45 million in penalties to the US SEC and the NASAA over allegations that it offered crypto lending products without complying with the necessary regulations. Commenting was Gary Gensler – Chairman of the SEC:
“We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors. Compliance with our time-tested public policies isn’t a choice.
Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable. In this case, among other actions, Nexo is ceasing its unregistered lending product as to all U.S. investors.”
Nexo confirmed the fines, stating they are pleased to have engaged in a “constructive dialogue” with the watchdog and settled all the issues. 
The post Nexo Mulls Suing Bulgaria for $1 Billion, Says Co-Founder Antoni Trenchev appeared first on CryptoPotato.

The Bulgarian authorities launched their attack on Nexo to sabotage the third mandate, Trenchev maintained.

cryptopotato.com

Nexo Mulls Suing Bulgaria for $1 Billion, Says Co-Founder Antoni Trenchev

The US Securities and Exchange Commission (SEC) has levied a $45 million fine on Nexo Capital Inc. The SEC explains the reason for the fine in a tweet,
Today we charged Nexo Capital Inc. with failing to register the offer and sale of its retail crypto asset lending product, the Earn Interest Product (EIP). To settle charges, Nexo agreed to pay $22.5 million and cease its unregistered offer and sale of the EIP to U.S. investors.
The $22.5 million fine for selling EIP to US investors. Moreover, the $22 million fine will go through settling the claims by State Regulatory Authorities. The SEC Chairman, Gary Gensler, reinforces that crypto organizations must comply with its policies. Failure to do so will allow the SEC to hold the defaulters accountable. 

What Is EIP And Why The Fine?
Starting in June 2020, Nexo is marketing and selling its Earn Interest Product (EIP) in the USA. Nexo operates so that it lends money to its customers, and interest becomes its primary source of income.  Nexo uses this interest income to pay interest on its loans further. However, several states in the USA alleged that Nexo’s earn-interest service is not registered as a Security. 
As a result, the states of California, Oklahoma, Vermont, South Carolina, Kentucky, and Maryland took the company to court. They demanded a cease-and-desist order on the company’s EIP service. 

The SEC order says that Nexo used its EIP service to fund interest payments and inject it into its other businesses. Moreover, the SEC holds Nexo at fault because their EIP Security fails to meet the requirements for an exemption from the regulatory authority. 

Today we charged Nexo Capital Inc. with failing to register the offer and sale of its retail crypto asset lending product, the Earn Interest Product (EIP). To settle charges, Nexo agreed to pay $22.5 million and cease its unregistered offer and sale of the EIP to U.S. investors.
— U.S. Securities and Exchange Commission (@SECGov) January 19, 2023

Even though Nexo agrees to pay the fine and stop the EIP service, they have not confirmed the allegations. In response to the penalty, Nexo also published a settlement tweet confirming that they agree to a no-admit-no-deny settlement. 

Nexo has reached a final landmark resolution with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), consisting of all 50 U.S. States & 3 territories and the Attorney General of New York.https://t.co/modjbPsOdV
— Nexo (@Nexo) January 19, 2023

Further, Nexo’s Co-Founder Antoni Trenchev says,
We are content with this unified resolution which unequivocally puts an end to all speculations around Nexo’s relations with the United States. We can now focus on what we do best – build seamless financial solutions for our worldwide audience.
SEC Is Getting More Vigilant And Strict
Noting some of the SEC’s previous actions on crypto companies, it can be said that it is tightening the noose. In February 2022, SEC fined BlockFi $100 million for its unregistered securities offerings. The BlockFi fine acted as a warning for several other crypto firms offering similar products. 
A Cornerstone Research finds several proceedings in which the SEC holds crypto companies accountable for their services, solutions, and actions. Over 30 such enforcement proceedings came under the chairmanship of Gary Gensler in 2022. Similar to the Nexo case, the SEC also charged Gemini for its unregistered service in the form of sales of securities.




The US Securities and Exchange Commission (SEC) has levied a $45 million fine on Nexo Capital Inc. The SEC explains the reason for the fine in a tweet, Today we charged Nexo Capital Inc. with failing to register the offer and sale of its retail crypto asset lending product, the Earn Interest Prod...

newsbtc.com

Nexo Pays $45M In Penalties And Settles With US Authorities

A former high-ranking executive of the U.S. Securities and Exchange Commission (SEC) is calling out crypto lender Nexo’s multimillion-dollar settlement with the regulatory agency.
According to a new press release, Nexo has agreed to a settlement deal with the SEC for selling unregistered securities that will see it paying the regulatory body $22.5 million.

Furthermore, Nexo will also pay another $22.5 million to settle similar charges levied by state authorities.
The SEC finds that starting around June 2020, Nexo began offering its earn interest product (EIP), which was marketed as a way for traders to earn interest on their digital assets. However, the SEC deemed the EIP as a security, which falls under its jurisdiction and must be registered.
As stated by SEC Chair Gary Gensler in the press release,
“We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors. Compliance with our time-tested public policies isn’t a choice.” 
However, John Reed Stark, who spent 11 years as the head of the SEC’s Office of Internet Enforcement, is lampooning Nexo’s take on the deal, saying that the company referring to the settlement as a victory of innovation is absurd.
 “Nexo pays a whopping $45 million to the SEC but claims a victory for ‘innovation.’ Such absurd spin is the latest crypto-trend. BlockFi similarly touted its $100 million SEC penalty as a victory for ‘regulatory clarity.’” 
Just a few weeks before the settlement, Nexo announced that it would be leaving the US due to a lack of regulatory clarity. At the time, the crypto lender also announced that it would cease selling its EIP.
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Featured Image: Shutterstock/jovan vitanovski
The post Former High-Ranking SEC Official Blasts Crypto Lender Nexo’s $45,000,000 Settlement Deal With US Regulator appeared first on The Daily Hodl.


A former high-ranking executive of the U.S. Securities and Exchange Commission (SEC) is calling out crypto lender Nexo’s multimillion-dollar settlement with the regulatory agency. According to a new press release, Nexo has agreed to a settlement deal with the SEC for selling unregistered securiti...

dailyhodl.com

Former High-Ranking SEC Official Blasts Crypto Lender Nexo’s $45,000,000 Settlement Deal With US Regulator

Bitcoin continues to trade in a tight range of around $21,000 following yesterday’s enhanced volatility, with the asset standing just inches away from that line.
Most altcoins are slightly in the green today, with XMR and Apecoin being the best performers from the larger caps. NEXO is up by double digits from the lower-cap alts after the recent settlement between the crypto lender and US authorities.
Bitcoin Challenges $21K
Bitcoin’s 2023 has started on a positive note, following the violent 2022, and the cryptocurrency finally reclaimed $17,000 after weeks of struggling below that level.
This turned out to be the breakout moment the asset needed as it went on a roll in the next several days. This resulted in skyrocketing above $21,000 last Saturday for the first time in about two months.
After a relatively quiet rest of the weekend, BTC went on the offensive at the start of the working week once again. This resulted in exceeding $21,600 to make its highest price tag since September.
The bears intercepted the move and pushed bitcoin south by several hundred dollars. Since then, BTC has been unable to decisively overcome $21,000 once again and currently sits inches away from it. Nevertheless, there’re now multiple on-chain signs suggesting the start of a new bull market.
BTC’s market cap has remained above $400 billion, and its dominance over the alts sits tight at 41.4%.
BTCUSD. Source: TradingView
NEXO Pumps Hard
One of the largest cryptocurrency lenders – Nexo – who has been frequently in the news lately, reached a settlement with the SEC and NASAA, agreeing to pay $45 million in fines for breaking local securities laws. Interestingly, this had a positive effect on the native token’s price, which is up by 12% in the past 24 hours.
XMR, HBAR, and APE are next in line in terms of daily gains, all of which have added up to 7.5%.
The larger-cap altcoins are calmer, but most are still in the green. Ethereum is back to $1,550 following a 1.5% daily increase. Ripple, Cardano, Polygon, OKB, Polkadot, Shiba Inu, Litecoin, and Tron have increased by somewhere between 1-3%.
Binance Coin, which recently went through its 22nd scheduled token burn, is among the few alts in the red.
The cumulative market cap of all crypto assets has added $10 billion daily and is up to $975 billion on CMC.
Cryptocurrency Market Overview. Source: Quantify Crypto
The post Bitcoin Bulls Fight for $21K, NEXO Explodes 12% Daily (Market Watch) appeared first on CryptoPotato.

The settlement between US authorities and Nexo has resulted in a price surge for the latter's native token.

Bitcoin Bulls Fight for $21K, NEXO Explodes 12% Daily (Market Watch)

Back in September, the Californian DFPI and other U.S. regulators ordered Nexo to desist from offering Earn Interest Products (EIP), which in the company’s case took the form of crypto asset lending accounts.
At the time the charges were filed, Nexo had already ceased offering the accounts to U.S. investors.
However, U.S. investors could still use the feature by opting for automatic renewal on already existing accounts.
Cooperation With Authorities
Four months later, both the SEC and The North American Securities Administrators Association (NASAA) announced that their legal actions against the lender had concluded. As a result of the investigation, Nexo voluntarily agreed to pay $45 million in fines.
The crypto platform refused to confirm or deny the regulators’ findings – nevertheless, a spokesman for the SEC stated that the penalties imposed on the firm took into account Nexo’s cooperation and willingness to engage with regulators without constraint.
Furthermore, SEC Chairman Gary Gensler stated that Nexo was not charged for operating an EIP but for failing to register it properly.
“We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors. Compliance with our time-tested public policies isn’t a choice. Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable. In this case, among other actions, Nexo is ceasing its unregistered lending product as to all U.S. investors.”
Multiple Fines Split Between Regulators
The $45 million in penalties will be paid out to multiple entities across at least 18 separate fines. The largest accounts for half of the total sum and will be paid out to the SEC directly.
The remaining $22.5 million will be paid out to at least 17 separate state securities regulators, coordinated by the NASAA. The exact states are unnamed; however, we can surmise that California is one of them, owing to their early involvement in the case.
The agreement was also confirmed by Nexo in a 9-part thread on Twitter.

Nexo has reached a final landmark resolution with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), consisting of all 50 U.S. States & 3 territories and the Attorney General of New York.https://t.co/modjbPsOdV
— Nexo (@Nexo) January 19, 2023

In the thread, the spokesperson for Nexo once again stated that there were no allegations of fraud or anything else except an unregistered securities offering. The spokesperson also reiterated that the company is pleased to have engaged in constructive dialogue with the authorities and that they will continue to grow and improve based on the feedback they received.
The post Nexo Agrees to Pay $45 Million in Fines to US Authorities appeared first on CryptoPotato.

The fines will be paid to the SEC and NASAA, who opted for a lower penalty in light of Nexo’s cooperation.


NEXO price	$0.85643
Low - High 24H	$0.837543 - $0.859757
Market cap	$479.33M
Volume 24H	$6.08M
All time high	$4.07 -78.99% May 12th 2021
All time low	$0.045153 1792.75% September 13th 2018
Genesis date	N/A

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