crypto-lending platform Nexo caught allowing illegal loans in eight states | Crypto

crypto-lending platform Nexo caught allowing illegal loans in eight states

– The states of California, Kentucky, New York, Maryland, Oklahoma, South Carolina, Washington and Vermont have filed actions against the crypto-lending platform Nexo Group in connection with its unregistered, interest-bearing cryptocurrency product.

– State regulators allege that Nexo offered customers interest-earning accounts without first registering them as securities and providing necessary disclosures.

– The filings also allege that Nexo misrepresented the accounts and suggested to investors that it is a licensed and registered platform.

– Nexo’s terms and conditions said the company had the ability to deploy customer assets at its “sole and absolute discretion.”

– In response to more than 10,000 of its residents being affected, New York’s Attorney General Letitia James filed a lawsuit against the cryptocurrency platform.

– The orders states filed further prevent Nexo from offering this product to residents until it meets the necessary registration requirements.

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