California, New York and six other states are suing cryptocurrency lending platform Nexo for offering unregistered securities in the form of accounts that pay interest for cryptocurrency deposits, the states said in statements on Monday.
“Nexo violated the law and investors’ trust by falsely claiming that it is a licensed and registered platform," said New York Attorney General Letitia James, who is demanding the company give up the revenue from its "Earn Interest Product" accounts and provide restitution to customers. "Nexo must stop its unlawful operations and take necessary action to protect its investors.”
After the Securities and Exchange Commission made its view clear on interest-bearing accounts early this year, Switzerland-based Nexo said it had "voluntarily ceased the onboarding of new US clients for our Earn Interest Product as well as stopped the product for new balances for existing clients," according to a statement sent to CoinDesk on Monday. "Nexo is committed to...
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