Nexo halts U.S. operations

Because talks with U.S. authorities failed, the crypto lending service is pulling back from the U.S.

Because talks with U.S. authorities failed, the crypto lending service is pulling back from the U.S.

In a blog post the European crypto-lending service Nexo announced it is pulling back from the U.S. Specifically, it states: "Products and services will be stepped down in the United States over the coming months in a phased manner."

Talks Break Down

The move reportedly comes "after more than 18 months of good-faith discussions with the U.S. federal government authorities that have run into a roadblock." Nexo would, despite conflicting and shifting positions with "state and federal regulators, continually strive to provide the requested information and proactively adjust its activities in response to their concerns." "The Earn Interest product will no longer be available to existing customers in eight U.S. states starting December 6," the company said.

In the meantime, real-time payments will continue to be processed. Following the scandals around the FTX crypto exchange, several crypto lending services are facing financial troubles. Rumors of payment problems have also circulated around Nexo.