Ohio Securities Department Joins Nexo’s Settlement Agreement with $22.5 Million

03/01/2023 22:31 • Blockchain Buzz • 116 views

It is reported that the Ohio Securities Department of the United States announced that it had joined the settlement agreement of the loan platform Nexo with US $22.5 million. Nexo agreed to pay US $22.5 million to settle the charges with Ohio and other states of the United States, the District of Columbia, Puerto Rico and the United States Virgin Islands (pay US $424528.30 to each jurisdiction) to solve the violations. It is said that Nexo’s EIP product promised to pay investors encrypted interest, and the product failed to comply with the national securities registration requirements, depriving investors of the important information needed to understand and evaluate the investment EIP risk. As of July 31, 2022, there were 2327 Ohio EIP accounts with a value of 15858147 dollars. Nationwide, Nexo has 93318 EIP investors in the United States, with a total asset value of US $802.26 billion.

Ohio Securities Department of the United States joined the settlement agreement of the loan platform Nexo with US $22.5 million

Interpret the above information:

The Ohio Securities Department has announced that it will join the settlement agreement with the loan platform Nexo for $22.5 million. Nexo has agreed to pay this settlement amount to Oho and other states, including the District of Columbia, Puerto Rico, and the United States Virgin Islands. The amount will be distributed equally among these jurisdictions, with each receiving $424,528.30.

Nexo’s EIP product, which promised to pay investors encrypted interest, was found to be in violation of the national securities registration requirements. This violation left investors without the necessary information to understand and evaluate the risk involved in the investment. The failure to comply with the registration requirements has resulted in Nexo’s settlement agreement.

As of July 31, 2022, there were 2,327 Ohio EIP accounts with a total value of $15,858,147. Nationwide, Nexo has 93,318 EIP investors in the US, with a total asset value of $802.26 billion.

The settlement agreement with Nexo highlights the importance of adhering to securities registration requirements. Failure to do so can result in charges filed by the SEC and individual states, leading to costly settlements. Investors must have access to all relevant information to make informed decisions about investment risks, and companies must provide this information accurately and transparently.

In conclusion, the Ohio Securities Department joining Nexo’s settlement agreement emphasizes the need for companies to exercise caution when dealing with investment products. Adhering to securities registration requirements can avoid legal issues and costly settlements. Investors must always have access to complete and accurate information when investing in new products, and companies must ensure they provide this information transparently.

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