Nexo Capital, a crypto lender, has agreed to pay a settlement of $45 million to the US states and the Securities and Exchange Commission (SEC). The settlement is due to the company not properly registering a crypto asset lending product as a security. The SEC alleged that Nexo had offered and sold securities without registering them with the SEC and without a valid exemption from the registration requirements. Nexo also allegedly made false and misleading statements about the product, including its safety and potential returns. The settlement requires Nexo to pay a $25 million penalty to the SEC, $4.2 million to the states, and $15.8 million in disgorgement and prejudgment interest. Additionally, Nexo must register the product as a security and provide periodic reports to the SEC. This settlement serves as a reminder that companies must comply with all applicable laws and regulations when offering and selling securities.