NY General Attorney Sues Nexo for Defrauding Investors
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26 September

New York Attorney General Letitia James has sued cryptocurrency lending firms Nexo Inc. and Nexo Capital Inc. (Nexo) for failing to comply with the local financial rules.

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According to a press release, Nexo lied to investors about its registration status. Attorney General James said:

"Cryptocurrency platforms are not exceptional; they must register to operate just like other investment platforms. Nexo violated the law and investors' trust by falsely claiming that it is a licensed and registered platform. Nexo must stop its unlawful operations and take necessary action to protect its investors."

The Office of the Attorney General (OAG) filed the lawsuit in New York County State Supreme Court. The regulator alleges that Nexo "promoted and sold securities" in the form of an interest-bearing accounts, promising high returns.

Moreover, OAG alleges that Nexo engaged in the "unregistered purchase and sale of securities" through its trading platform. According to preliminary data, roughly 10,000 New Yorkers have accounts with Nexo.

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State securities regulators of California, Kentucky, Maryland, Oklahoma, South Carolina, Washington, and Vermont have also filed their own administrative actions against Nexo.

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