The SEC cracked down on the crypto lending platform Blockfi last week, fining the business $100 million in penalties. New Jersey, Kentucky, Texas, Alabama, and Vermont are among the states that have warned Blockfi about the company’s interest-bearing accounts. The announcement came after the warnings.
Some states issued cease and desist orders, ordering the company to stop offering Blockfi Interest Accounts (BIAs) by a certain date. After the US Securities and Exchange Commission levied fines on Blockfi, the crypto lending firm Nexo said that “great savings news” was coming for people in the United States.
According to Nexo Josh, the Reddit moderator of the subreddit r/nexo, U.S.-based Nexo customers will be seeing some new improvements to the Nexo savings programme that bear interest. Nexo Josh said that the corporation “voluntarily introduced adjustments” to its earn interest programme in the United States in order to “comply with newly-announced advice.”
According to Nexo’s representative, non-U.S. customers are “not subject to the SEC’s recommendations and remain unaffected.” Existing US customers will continue to receive interest on their accounts. However, Americans will not be able to earn interest on newly added balances.