A leading crypto lending platform is now on the radar of regulators of 8 the US states because it fails to register with the state’s securities and commodities brokers.
Nexo is a popular crypto lending platform in the crypto industry. This platform allows its customers to earn high-yield returns on the holding funds on the platform. This year during the high volatility situation in the crypto market, Voyager Digital, BlockFi & Celsius like successful crypto lending platforms failed to maintain the backend operations and it was a good time for the Nexo platform to show its ability to provide better services over other lending platforms.
On 26 September, New York Attorney General Letitia James published a PR to inform that 8 state regulatory bodies sued Nexo platform.
According to the press release, Nexo failed to register it with the securities and commodities brokers or dealers of the respective states. James also noted that Nexo lied to customers & investors about their registration status.
The New York Attorney General also said that state regulators ordered Nexo to register with the respective securities & commodities regulatory body but Nexo didn’t follow the orders.
James said that cryptocurrencies are not outside the financial system and these should be registered under the respective regulatory bodies.
“Cryptocurrency platforms are not exceptional; they must register to operate just like other investment platforms”
James further said:
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.”
Nexo coin price
Nexo is the native token of the Nexo platform and the current price of this coin is $0.883 and this price is down by around 5.56% over the last 24 hours global trade price.