Crypto Lender Nexo Pays $45 Million in Fines to SEC, States (1)

Digital-asset firm Nexo Capital Inc. will pay $45 million in penalties to US federal and state regulators over allegations that it broke securities rules by offering a crypto lending product.

The Securities and Exchange Commission on Thursday said that Nexo’s Earn Interest Product amounted to a security that should have been registered with the agency. It’s the latest in a series of cases that Wall Street’s main regulator has brought over similar products.

“We are not concerned with the labels put on offerings, but on their economic realities. And part of that reality is that crypto assets are not exempt ...