– 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.