AG: $45 million settlement reached with Nexo for sales of unregistered securities

South Carolina Attorney General Alan Wilson announced financial services companies Nexo Inc. and Nexo Capital Inc. have settled allegations they broke state law by offering and selling unregistered securities.

COLUMBIA, S.C. (WOLO)— South Carolina Attorney General Alan Wilson announced financial services companies Nexo Inc. and Nexo Capital Inc. have settled allegations they broke state law by offering and selling unregistered securities.

Today’s agreement will resolve an Order to Cease and Desist filed by the Division against Nexo on Sept. 26, 2022, say officials.

Nexo agreed to pay $22.5 million to the 53 North American Securities Administrators Association member jurisdictions and $22.5 million to the U.S. Securities and Exchange Commission.

According to a release, in offering its EIP, Nexo failed to disclose information about the investment, including, Nexo EIP’s interest generation deployment activities, Nexo’s legal and regulatory compliance in South Carolina, and the limitations of Nexo’s financial representations.

As of July 31, 2022, Nexo had 93,318 EIP investors in the US with a total asset value of almost $800 million. More than 1,150 were South Carolina residents with total assets valued near $7.3 million.

Nexo also agreed that it will cease and desist from offering its EIP unless properly registered or exempt. It also agreed to notify EIP account holders on or before February 1, 2023, that investors should withdraw funds from their accounts before April 1, 2023.

Investors can submit a complaint or learn more by visiting the Attorney General’s Office website at www.scag.gov.