Still Haunted: Nexo’s Legacy Victims Await SEC Follow-Through - Case 2025-000001

In 2023, the U.S. Securities and Exchange Commission fined crypto lender Nexo $45 million for its unlawful Earn Interest Product (EIP), a move that brought temporary closure, but not justice, for many investors.

As of today, legacy users, especially those of retirement age, are still suffering the consequences of inadequate cross-border enforcement. I am one of them.

The Cross-Border Framework That Failed Us

The SEC and Switzerland’s FINMA maintain a bilateral Memorandum of Understanding (MOU), affirming both agencies’ commitment to investor protection and regulatory cooperation. This agreement enabled information sharing and coordinated enforcement, but it failed in practice when it mattered most.

While Nexo operated globally under the credibility of Swiss regulation, FINMA failed to intervene. Nexo structured itself behind a Cayman Islands entity while maintaining operations in Zug, Switzerland—avoiding meaningful oversight from either jurisdiction.

When the SEC finally acted in 2023, harm had already occurred.

What the SEC Got Right—and Missed

The SEC’s cease-and-desist order targeted the Earn Interest Product (EIP), acknowledging it as an unregistered security. But many of us suffered losses under other Nexo offerings, such as its so-called “Credit Line”, which were not covered by the ruling.

I lost my life savings. At 65, I now face bankruptcy, with no meaningful path to restitution. The silence from both regulators is deafening.

The SEC–FINMA MOU: A Broken Promise?

The MOU still stands. But what is a bilateral commitment worth if it doesn't protect real investors?

I have supplied FINMA with legal counsel, documentation, and a clear path to resolution. Still, no action. I am asking the SEC to re-engage, not by relitigating, but by:

• Demanding Nexo settle with legacy victims
• Invoking the FINMA MOU to apply bilateral pressure
• Reaffirming that delay and foreign silence do not excuse inaction

A Second Act for the SEC

The SEC has already demonstrated it can hold Nexo accountable. Now it must finish the job—because legacy harm is still within its jurisdiction and mandate.

I am not seeking a windfall. I am trying to avoid dying bankrupt. This is a test of regulatory follow-through—and a warning that cross-border oversight means little if it abandons those harmed the most.