Bulgarian-rooted cryptobank Nexo has announced that it will stop providing its products and services on the territory of one of its main markets – the United States in the coming months, Coindesk reports. Access to the company’s depository product has already been suspended in 8 states.
The development comes after regulators in those states launched investigations into violations of securities laws in September.
From Article on the Nexo blog The company is believed to have negotiated with state and federal authorities, but ultimately reached an “impact” despite attempts to “proactively change its business.”
Unnamed recent events — possibly the collapse of cryptocurrency exchange FTX — have created an “impossible environment” for the company’s continued operations on US soil as a reason for profits.
It is currently unclear when the Nexo will finally leave the US. Its competitors like BlockFi, Celsius Network, and Voyager Digital are in an even more complicated situation, with many currently on the verge of bankruptcy or beyond.
