Nexo to Shut Down Earn Program in April for US Customers
- Nexo has confirmed that it will also shut down its Earn Program for customers in the US on April 1, 2023.
- “As you are a US client, we ask that you begin planning the withdrawal of your funds at a convenient time by this date,” said the crypto firm.
- The crypto lending firm plans to exit the US market and has ended new user registration in December 2022.
- It is withdrawing from the US because of the “inconsistent and changing positions” of regulators.
The actions taken by the United States Securities and Exchange Commission (SEC) regarding crypto staking and other services provided by crypto firms have attracted the criticism of the entire industry, and investors are not happy. After announcing its departure from the US market in December, crypto lending firm Nexo has confirmed that it will also shut down its Earn Program for customers in the US.
According to a blog post published over the weekend, Nexo confirmed that following its settlement with the SEC, the North American Securities Administrators Association (NASAA), consisting of all 50 US states and three territories, the Attorney General of New York, the Texas Department of Banking, the Washington Consumers Services Division, and the Alaska Division of Banking and Securities, it will be shutting down its Earn Program while the regulators have dropped all inquiries into the crypto lending firm.
“We would now like to inform you that we will be stopping our Earn Interest Product for all US clients, which includes US citizens and US residents (including US territories) on April 1, 2023, and all fixed terms will then be unlocked. As you are a US client, we ask that you begin planning the withdrawal of your funds at a convenient time by this date,” said Nexo in the blog post.
It is also crucial to note that Nexo has ended new user registration in the US and will soon withdraw from the region completely. For clients in Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington, access to the Earn Interest Product was shut off on December 6, 2022. However, US investors do have access to other products “until further notice.”
Nexo engaged in “good-faith dialogues” with the US SEC and other regulators for over 18 months before reaching this decision and added that it is withdrawing from the region because of the “inconsistent and changing positions” of regulators.
Additionally, the crypto lending platform confirmed that between now and April 1, 2023, the balances of each user on the platform “will continue to receive the same interest rate as that of the date of Nexo’s landmark resolution in the US (January 19, 2023).”
“This does not affect Nexo’s other services, which are fully functioning and processing transactions in real time as always, in order to support you in this transitional period,” added the firm.
For those who have outstanding credit lines, the crypto lending platform advised them to start planning their repayments and told them that they would be given a considerable amount of time to repay their loans and withdraw collateralized assets. On the other hand, if a non-US user’s account has been flagged as a US account, they will need to submit verification documents to confirm their identity.
Nexo stated that “all acceptable supporting documents, except the tax return form, as indicated above, should be dated within the past three months and should show your residential address along with your name.”
As reported earlier by Bitnation, the crypto lending firm recently filed a lawsuit against Cayman Islands Monetary Authority (CIMA) the same week that Bulgarian authorities raided Nexo’s offices and indicted four people on charges of money laundering.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
