Nexo, a cryptocurrency lender, has re-entered the U.S. market in early 2024, nearly two years after settling with the U.S. Securities and Exchange Commission (SEC). The Bulgarian Prosecutor’s Office closed this criminal case against the company in December 2023. Now, the company is following through with that decision. With this new development, Nexo is able to offer its products and services to retail and institutional clients in the United States.
The return comes as a notable reversal for Nexo, which had its offices raided by prosecutors in January 2023. Nexo was accused of money laundering, tax offenses, and computer fraud in very concrete terms. These purported violations took place from 2018 until January 2023. Nexo's management consistently denied all charges.
The Bulgarian Prosecutor’s Office took that very seriously, and undertook a detailed investigation, and in the end found nothing to support those deeply damaging allegations. Investigators found no evidence of money laundering, tax evasion, or other criminal conduct.
In January 2023, Nexo was charged by the U.S. Securities and Exchange Commission (SEC). The SEC alleged that Nexo did not register its Earn Interest Product. Nexo later settled with the SEC, paying $22.5 million in penalties and fees related to the settlement.
The pending legal challenges took a serious toll on Nexo’s ability to execute on their business plans. Its much-anticipated U.S. stock market listing was derailed when the criminal investigation stalled. In nearly all cases, Nexo sought to recoup $3 billion related to the as-of-yet incomplete criminal investigation. Adding insult to injury, a Cristiano Ronaldo soccer sponsorship blowup didn’t help.
Nexo touting its return to the U.S. market on X, formerly Twitter. The company today has contracts working for U.S.
We are embracing renewed optimism and entrepreneurial momentum to deliver our full products to American clients in a supportive environment. - Nexo
Nexo’s offering is now accessible to retail and institutional clients across the United States.
