BlocksInform
Allyson Versprille
Cryptographic platform Nexo seems to change the conditions for American customers to a product that offers the ability to earn high interest rates on crypto repositories. The decision follows the U.S. Securities and Exchange Commission’s recent settlement with BlockFi Inc. over a similar product.
In a statement posted to its official subreddit Friday by a moderator who isn’t an employee with the company but says he works “closely” with them, Nexo said the changes are an effort to voluntarily comply in light of BlockFi’s agreement to pay $100 million to federal and state securities regulators to settle allegations that it illegally offered a product that pays customers high rates to lend out their digital tokens.
Blockfi now plans to register its bids with the regulator -- a path that nexo on the subreddit platform has stated that it also intends to follow. Existing U.S. nexo customers will not be able to earn interest on new deposits, although they will be able to continue to earn interest on existing digital asset balances, the news item says. New customers will not have access to the product.
The firm indicated that it ultimately intended to make a new offer consistent with securities laws. The recently announced changes will be in place “until the restructuring of the Earn Interest Product and the registration process with the relevant regulatory bodies are finalized,” according to the statement. Nexo did not immediately send back a request for comments.
Nexo on its website touts its interest-bearing product as offering up to 20% of annual interest for investors. The firm said that non-U.S. clients will not be affected by the recent updates.
Bloomberg reported in January that SEC is scrutinizing Celsius NetworkGemini Trust Co.Voyager Digital Ltd. over issues similar to the ones raised in the BlockFi settlement.
