By James Davis
The UK-based crypto firm Nexo will suspend its Earn Interest Program (EIP) for US clients before April. A report issued by Nexo’s management on February 10 urged the customers to withdraw their assets before April 1. Also, the company has developed a purposeful strategy for clients with outstanding balances.
The report revealed that the suspension of the Earn Interest Program would impact US citizens and non-citizens residing in the US.
Nexo Faces SEC Charges
As the crypto-savvy population increases, regulators portray a spiked appetite for combating digital-related crimes. On January 19, the securities exchange commission sanctioned Nexo for providing unregistered crypto services and products. The regulators considered Nexo’s action unlawful, imposing a $45M fine.
Notably, Nexo agreed to settle the fine and refrain from offering services contravening the SEC law. Such services include Nexo’s Earn Interest Program, which contravened the Securities Act of 1933. The Securities Act obliges investors to conduct fair business activities to protect consumers from unethical practices.
Unplanned Suspension of Earn Interest Program
Following the SEC directives, Nexo has announced plans to cease the operation of its Earn Interest Program in the US. The statement dated February 10 revealed that the Nexo system is accepting customers’ withdrawals. The US clients are encouraged to withdraw their assets from the Earn Interest platform before April 1.
In the meantime, the crypto company restated that the customers’ assets on the platform would continue to yield an interest rate until April 1. On January 19, Nexo pledged to comply with the landmark resolution in the United States by adopting the proposed interest rates.
Additionally, the report illustrated that Nexo prioritizes customers’ interest by providing a sufficient loan repayment period. Also, Nexo’s statement reaffirmed that it utilizes tentative steps for customers to recover their collateralized assets.
Nexo’s Next Move
Nonetheless, Nexo assures to support the customers and respond to any complaints. As such, the US non-citizens questioning the suspension of their account are requested to provide further details. The crypto firm intends to resolve unsatisfied customers’ queries using data capture while verifying the account details, including bank account and utility bills.
As per the report, Nexo has discouraged non-citizens in the US from providing tax return reports as supporting documents. Meanwhile, the company support team reassured the community of its devotion to addressing investors’ complaints amicably. The report portrayed optimism that the regulators’ move would provide clarity in the regulatory framework to safeguard the cryptos.