Eight states sue crypto lender Nexo over security sales and misleading marketing

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It allegedly let New Yorkers use its crypto interest product.

, ordering the exchanges to stop offering services they weren’t authorized to offer in New York. At the time, Nexo responded by claiming it was already blocking New York citizens from accessing its service. The lawsuit, which you can read in full below, alleges that wasn’t true.

The lawsuit also alleges that Nexo’s claims of being a “Licensed & Regulated Digital Assets Institution” are misleading. At the time of writing,claims to be in “full compliance with all applicable global and local regulations and standards” for the areas it operates in and lists the licenses it has to operate. Entries on that list include licenses from Maryland, Oklahoma, and South Carolina, states that are also filing complaints against the company, according to the New York AG.

According to the statement, Nexo voluntarily stopped letting new US customers access its Earn Interest Product after the Securities and Exchange Commission released its guidance on crypto products offering interest in February 2022. The statement continues, saying that “Nexo is committed to finding a clear path forward for the regulated provision of products and services in the US, ideally on a federal level.

 

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