Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/ Since day 1, we have gone the extra mile to implement cutting-edge solutions to ensure adherence to the highest regulatory standards and simultaneously provide a smooth customer onboarding journey. 2/

Today we are announcing the regrettable but necessary decision that Nexo will be phasing out its products and services in the United States due to a lack of regulatory clarity. 🧵 Since its inception Nexo has expended significant efforts to do things the right way. Initially, regulators encouraged our cooperation and a sustainable path forward seemed viable, but recent events and the subsequent change in regulators’ behavior point to the opposite. 2/8

Nexo has grown as a company, and so has our offering, but the underpinning principles remain the same. With this thread, we would like to shed some light on Nexo’s business model and how it might differ from that of others. 🧵

Take a look at the chart below and let’s unpack it: Since 2018 the core of Nexo’s business is the facilitation of collateralized credit. Where we differ from others is our battle-tested real-time risk engine. We always require highly liquid collateral at appropriate loan-to-value ratios, for retail or institutional clients. 2/33

.@Nexo has $0 net exposure to FTX/Alameda.
As a conservative institution with stringent risk controls @Nexo has safeguarded *all* funds by withdrawing its entire balances from the exchange over the past few days, as evidenced by on-chain data:

https://twitter.com/asvanevik/status/1589972490549612544?s=46&t=fUrwamabTiPxXp2Hx_1kyw

1/ .@Nexo has a small loan to Alameda (<0.5% оf our assets), fully collateralized by digital assets that were sold in full by our team two days ago, resulting in 100% principal recovery and $0 losses for the company.
More on Nexo’s fundamentals: nexo.io/security
2/

All Nexo products are operating normally – Borrow, Earn, Exchange, the Nexo Card.

As always – deposits and withdrawals are processed instantly so that all of you can make the necessary arrangements in this latest downturn in the markets. 1/ Nexo is the first and only blockchain finance company to have a real-time audit of its custodial assets, showing that the company’s assets exceed its liabilities at all times which attests to Nexo’s liquidity and ability to meet all of its obligations.2/

real-time-attest.trustexplorer.io/nexo