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Nexo to Cease its Earn Interest Product for US Clients on April 1st Following SEC Settlement

Nexo, a leading crypto lending platform, has announced that it will be stopping its Earn Interest Product for all US clients starting April 1, 2023. This decision follows a settlement that the platform reached with the US Securities and Exchange Commission (SEC), the North American Securities Administrators Association, the Attorney General of New York, the Texas Department of Banking, the Washington Consumers Services Division, and the Alaska Division of Banking and Securities. The settlement, which was concluded on a no-admit-no-deny basis, has closed all multi-year-long inquiries into Nexo’s operations.

As part of the settlement, Nexo will stop offering its Earn Interest Product to all US citizens and residents, including those in US territories, starting April 1, 2023. Clients who have open credit lines will be given ample time to repay their loans and withdraw their collateralized assets. However, Nexo is encouraging its US clients to start planning their withdrawal of funds as soon as possible.

Nexo’s other services, such as transactions processing, will continue to function normally, ensuring that clients are supported during this transitional period. The platform’s decision to stop offering its Earn Interest Product to US clients only applies to US-based clients, with non-US clients continuing to enjoy the full suite of Nexo’s services.

If clients believe their accounts have been mislabeled as US-based, they are required to update their verification details by providing a document, such as a bank statement, utility bill, tax return, tenancy agreement, or insurance statement, dated within the past three months. These documents should show the client’s residential address along with their name.

In conclusion, Nexo’s decision to stop offering its Earn Interest Product to US clients is in line with its belief that the development of clear regulatory frameworks is the best way to protect the crypto industry and bring it into the mainstream in a safe and compliant manner. The platform trusts that its cooperative approach to the relevant regulatory bodies will allow it to provide its industry-leading services to clients in the near future.

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