Mississippi Secretary of State Michael Watson Friday announced the office’s Securities Division joined 52 other jurisdictions and the Securities and Exchange Commission (SEC) in a $45 million settlement with Nexo Capital Inc. (Nexo). The settlement relates to the offering and selling of unregistered securities in digital asset investments.
State securities regulators, as members of the North American Securities Administrator Association (NASAA), found that Nexo failed to register the offering and selling of its interest-bearing digital, or crypto, asset accounts, the Earn Interest Product (EIP).
“We encourage innovative business practices and capital markets but will always ensure the law is followed to protect the interest of Mississippians, and crypto assets are no exception,” said Secretary Michael Watson. “Nearly 400 Mississippians invested around $3.1 million as of July 2022. Through the hard work of our Securities Division and others, each investor will have the opportunity to withdraw their assets.”
Mississippi will receive a series of payments in the sum of $424,528.30 over a period of 270 days. According to the settlement, Nexo must pay a total of $22,500,000 to all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands (collectively, 53 jurisdictions).
Per the Consent Order, Nexo agrees to cease and desist offering, selling, or renewing the EIP in all 53 Jurisdictions until properly registered. Additionally, all investors were to be notified by February 1, 2023, to withdraw assets before April 1, 2023.
The Secretary of State’s Office encourages investors to reach out with any concerns or questions about cryptocurrency-related offerings. The Securities Division may be reached by phone at (601) 359-1334 or email email@example.com.