Crypto lender Nexo has announced that it will no longer be offering its Earn Interest Product (EIP) to U.S. clients, residents, and citizens, effective February 10th.
This move comes after the company was fined $22.5 million by the U.S. Securities and Exchange Commission (SEC) for failing to properly register the offer and sale of EIP.
In response to the fine, Nexo stated that it would be stopping EIP in eight states and would no longer onboard clients in the U.S.
However, despite this change, the company reassured its customers that its other lending offerings would continue as normal and that clients would continue to earn the same interest as EIP until April 1st, 2023.
For those who were using EIP in the U.S., Nexo’s decision may come as a disappointment. However, the company has made clear that its other lending options will continue to provide the same benefits and services to its customers.
It’s important to note that this change only affects U.S. clients, and those outside of the country will still be able to enjoy the full range of Nexo’s products and services.
The company has made it clear that its decision to stop EIP in the U.S. is a temporary measure, and it will continue to monitor the regulatory landscape to ensure it is in compliance with all relevant laws and regulations.