Nexo News

The shutdown of Nexo’s earn product follows from a multi-million dollar settlement the firm paid last month with United States regulators.

The crypto lender didn’t admit or deny the findings from the SEC’s investigation despite agreeing to the settlement.

The company claims that the negotiations with potential crisis managers entered the “advanced stage.”

While the FTX saga continues to make headlines, last week brought a plethora of new troubles for crypto companies in the United States, Europe and Asia.

The crypto lender claimed that the Cayman Islands Monetary Authority had placed “too much weight” on regulators’ enforcement actions in its decision to deny registration.

A spokesperson for Bulgaria’s chief prosecutors has denied claims that the investigation was prompted by the company’s political donations.

Following the Jan. 12 raid on its Sofia offices, Nexo described prosecutors’ actions as a “kick first, ask questions later” approach.

Investigators have alleged that Nexo is involved in money laundering and violating global financial sanctions against Russia.

The crypto lending platform will no longer accept new customer registrations and will eventually wind down operations.

The firm withdrew its remaining balance from FTX at the 11th hour and topped weekly fund outflows from the troubled exchange.

Co-founder Kalin Metodiev stated that comparisons between Celsius, Voyager and Nexo are “very far from reality” and that the firm is focused on building in a sustainable way.

The crypto community chose to link the funds’ withdrawal with Nexo’s insolvency rumors due to the wallet's name — Nexo: 0x8fd.

Analysts fear NEXO price could come under pressure if regulatory action in the United States begins to intensify.

Kalin Metodiev emphasized that Nexo has been navigating through conversations with regulators for the past couple of years to ensure compliance, and was surprised that this news was “thrown out there in public.”

The state Department of Financial Protection & Innovation says the crypto-interest account is an unqualified security; Nexo has limited the accounts since the BlockFi settlement with the SEC.