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Crypto Lender Nexo to Stop EIP for US Clients on April 1

Last month Nexo paid a $22.5 million fine to the SEC for failing to register the offer and sale of its Earned Interest Product.

Updated Feb 13, 2023, 3:24 p.m. Published Feb 13, 2023, 7:28 a.m.

Antoni Trenchev, co-founder of Nexo (Shutterstock/CoinDesk)

Crypto lender Nexo said is will stop its Earn Interest Product (EIP) for all U.S. clients, residents and citizens, effective April. 1.

Nexo's decision comes after the lender paid a $22.5 million fine last month to the U.S. Securities and Exchange Commission (SEC) for failing to register the offering and sale of EIP. The firm also said at the time that it is stopping EIP in eight states and has stopped onboarding clients in the U.S.

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However, Nexo also said that its other lending offering will continue as usual and that clients will continue to earn the same interest as EIP until April 1, 2023.

CORRECTION (Feb. 13, 08:40 UTC): Corrects effective date in headline and lead.

Nexo Crypto Lending SEC US

Parikshit Mishra

Parikshit Mishra is CoinDesk's Regional Head of Asia, managing the editorial team in the region. Before joining CoinDesk, he was the EMEA Editor at Acuris (Mergermarket), where he dealt with copies related to private equity and the startup ecosystem. He has also worked as an Senior Analyst for CRISIL, covering the European markets and global economies. His most notable tenure was with Reuters, where he worked as a correspondent and an editor for various teams. He does not have any crypto holdings.