For the digital currency enterprise Nexo Capital Inc. The company has agreed to pay a $45 million penalty to the American Securities and Exchange Federation for violating financial regulations for marketing encrypted currency borrowing goods. But a former senior SEC official is sceptical of Nexo's self-proclaimed "victory" in the login password market because the financial regulator has quietly verified the top login password companies operating in the country.

Nexo's claim for victory

On Thursday, the American Securities and Exchange Federation (Securities and Exchange Commission, commonly known as SEC) announced that it had assessed the loan interest products offered by Nexo to form a security with which it would have to apply for registration. Referring to what Nexo called the internally announced victory, Robert Ristark, a former responsible person in the office of the Internet Technology Inspection Company of the Securities and Exchange Federation, said that Nexo, like all other defendants and defendants, reached an agreement before, during and after the SEC investigation, rather than "approving or denying wrongdoing."

Nexo paid SEC up to $45 million, but claimed it was also a victory for "indigenous innovation".

According to Stark, this latest cryptocurrency trend was initiated through BlockFi, and after paying $100m to SEC, BlockFi immediately touted that BlockFi's appeasement policy should be a unique and unusual victory for "controlled clarity." The absurd idea that BlockFi reached an agreement after the implementation of SEC is now being used by other cryptocurrency companies.

For additional information, please refer to:Take a look at the top ten breach loan platforms in 2023.

The contest between SEC and data encryption Enterprises

Similarly, when the company's US-based login password trading center Coinbase gradually marketed a similar data encryption loan program, SEC's application for registration required a lawsuit against Coinbase, and when SEC questioned Coinbase over implicit securities irregularities, SEC mentioned financial regulators "roughly" in an online article. Sure enough, Coinbase finally surrendered and did not intend to release the plan.

The report quoted Stark as saying:

Coinbase dodged a bullet by suspending its Lend program and choosing to abandon its war with the Securities and Exchange Federation (SEC).

Referring to the conflict between Gemini and SEC, Stark stressed that Gemini's important defense against SEC's complaint is that SEC's performance is "very bad" and that it is not good luck to take full account of what happened to Coinbase, BlockFi and Nexo. In the end, the former SEC official said statements issued by these companies-including claims of a "regulatory response"-began to become spontaneous and sporadic, generalizing it with other much more traditional political ideas.