Login password lender Nexo Capital has agreed to pay $45 million to the Securities and Exchange Commission (SEC) and the North American Securities administrators Research Association (NASAA), mainly because they are unable to record the provision and sale of their loan interest goods (EIP).

SEC and NASAA each released this information in two announcements on January 19th. According to SEC's statement, Nexo allowed to pay a penalty of $22.5 million and suspended the sale of unregistered EIP to US investors.

The report said the additional $22.5 million would be paid in the form of penalties, with similar charges from Duanzhou regulators.

NASAA said in a statement that the normal settlement would have been achieved after an investigation into Nexo's alleged provision and sale of securities over the past year.

In the survey, it is found that EIP investors can passively obtain loan interest by lending digital currency to Nexo.

Nexo maintains true administrative law enforcement procedures for activities with the theme of increasing returns for investors. The company uses its website or social network to offer and promote EIP and similar products to US investors, indicating that investors can earn up to 36 per cent in some cases.

SEC indicated that in the settlement negotiations, the Federation took into account Nexo's ability to collaborate at the short board level and the rapid rescue actions taken.

Gamo Gensler, the current chairman of the Securities and Exchange Commission, said:

Nexo has been accused of not applying for registration before providing its retail data encryption credit products to the community, bypassing the most basic disclosure rules dedicated to protecting investors.

"following everyone's tried-and-tested social policy is not an option. If the data encryption enterprise does not implement it, we will continue to pursue his obligations in accordance with the laws and regulations of factual evidence. In such a case, Nexo will, among other things, stop providing credit products that it has not registered to all US investors.

Although Nexo did not explicitly endorse or negate SEC's investigation report, the settlement of Nexo must be achieved with the strong support of a restraining order agreement, which forbids Nexo from violating all provisions of the Securities Act of 1933.

NASAA also explained that the research was conducted through at least 17 different state securities regulators, which allowed Nexo to settle the provisions of the agreement.

Although the name of such a state is not mentioned, Nexo will pay a penalty of $424528 for each state.

Nexo verified the message to more than 288600 fans in a tweet on Jan. 19.

Nexo shows that U. S. federal regulators have not charged all fraudulent or false business interests.

Howard Trentchev, founder of Nexo, said the company was pleased to have reached a settlement in the United States:

Satisfied with the decision to unify, it exactly ends all the speculation surrounding Nexo's ties with the United States. We can work on what we do best-to create seamless financial solutions for their worldwide audience. "

Related to:The Lithuanian government filed a lawsuit against four people after raiding the office of Nexo: report

Earlier that month, on 12 January, Lithuanian prosecutors gradually searched Nexo's offices in Lithuania, mainly because the company was suspected of participating in a large-scale money laundering program and violated Russian international sanctions.

On January 16th, Nexo adopted its own actions against the Cayman Islands Monetary Authority, mainly because the Bureau attached "excessive importance" to the enforcement actions of regulators in its decision to reject the registration of its virtual asset service provider.

Since its inception in the Cayman Islands in 2018, Nexo Capital has provided a variety of buying, selling, borrowing and lending services to retail and institutional clients in the United States.

Cointelegraph contacted Nexo Capital for further comment, but didn't immediately get a response.

UTC upgrade at 11:45 on January 19th night: added messages from NASAA and Nexo Capital.