After Paying $45 Million Fine, Crypto Lender Nexo Reenters US Market

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Digital asset financial institution Nexo is making a renewed push into the United States, the company confirmed on Monday, ending a self-imposed exile that began in the wake of a regulatory enforcement action.

The company’s troubles with US regulators culminated in a $45 million penalty over allegations that one of its lending products constituted an unregistered security. Nexo, which counts Antoni Trenchev among its co-founders, resolved the matter with the Securities and Exchange Commission without admitting or denying the charges.

Now, Nexo is charting a new course for its American expansion. The firm has teamed up with Bakkt, a prominent publicly traded entity in the crypto space, to roll out its services. US customers will gain access to crypto-backed loans and products designed to generate yield on their digital assets.

According to a Nexo spokesperson, the new business model has been carefully structured to comply with current regulations. The representative emphasized that the product previously scrutinized by the SEC is no longer available to US investors. “The current US offering is structured differently and is delivered through appropriately licensed US partners, including, where applicable, an SEC-registered investment adviser for advisory services,” the spokesperson added.