Nexo co-founders address recent cease and desist orders from US state regulators
Co-founder of Nexo Antoni Trenchev When Hosted by Karin Metdiev sweet On Oct. 4, they addressed recent cease and desist orders issued by several US state regulators.
Given the turmoil of the past few months, the pair also submitted questions about the platform’s robustness, trying to reassure users that bankruptcy is not a “Nexo reality.”
US State Regulators File Lawsuit Against Nexo
At the end of September, several US state regulators filed a lawsuit against Nexo over its earned interest products.
california Financial Protection and Innovation Division (DFPI) said it is investigating similar actions against BlockFi, Voyager Digital and Celsius. Two of the latter have filed for bankruptcy.
DFPI Commissioner Clothilde Hewlett commented that Nexo’s income products are unregistered securities and that the company seeks to protect Californians from the risks associated with such products.
In response to the AMA’s question about the impact of this on Nexo, trenchchev The company said it has begun dialogue with the appropriate federal and state departments.
“Apart from discussions at the federal level, we are also having discussions at the state level with several different state regulators asking clarification questions to provide data. It’s an ongoing process on the route.”
However, each institution has its own procedures, timelines, and internal dynamics, and the path forward is far from simple.
Nevertheless, Trenchev added that Nexo has always complied with its regulatory obligations, such as curtailing its revenue offerings to prevent existing users from replenishing new funds until the regulations are clarified.
Regarding the issuance of the ceasefire order, Trenchev said he was surprised at how cooperative and open the company was with regulators prior to the announcement.
“I can have my own thoughts on why they decided this was necessary.”
In any case, Trenchiev revealed that, in his opinion, the regulator wants to acquire a product in the cryptocurrency and has no intention of shutting it down. gave them reason to be very cautious.
rumors of bankruptcy
In response to the question as to whether Nexo is the next Celsius and Voyager, metdiev said that Nexo’s business model is dramatically different from that of Celsius and Voyager, drawing a line between the associations.
“We offer real services based on our technology and a sound business model based on uncompromising risk management protocols.”
Ms. Metdiev elaborated on the use of the word ‘no compromise’, exemplifying the implementation of margin calls when liquidity was removed as the borrower’s debt invariably exceeded a set level. I said yes.
In addition, Metodiev commented that “bankruptcy and bankruptcy are nowhere in Nexo’s reality,” and said the company is working hard to provide a sustainable future for its users.
