Nexo Capital, a crypto lending firm, has agreed to pay a $45 million penalty and cease its crypto lending product “Earn Interest” after being charged by the Securities and Exchange Commission (SEC) for selling unregistered securities.

The SEC stated that Nexo failed to register with the SEC before offering its lending product and did not qualify for an exemption from SEC registration.

In addition to the SEC charge, Bulgarian authorities also alleged that Nexo customers used the platform for illegal activities such as money laundering, tax offenses, and financing terrorist activities, which Nexo denies.

The settlement with the SEC and the accusations by Bulgarian authorities come as a blow to the crypto lending firm.