California files order against Nexo interest account, says it’s 8th state to take action
Cointelegraph
Published Sep 26, 2022 04:59PM ET
Updated Sep 27, 2022 06:40AM ET
The California Department of Financial Protection & Innovation (DFPI) has filed a desist and refrain order against crypto lending platform Nexo as part of its ongoing investigation of companies offering interest-bearing crypto assets accounts. The agency claims it is joining regulators from seven other American states in taking action against the company. The other states involved are Kentucky, New York, Maryland, Oklahoma, South Carolina, Washington and Vermont, according to CNBC.
The DFPI claimed in the filing that Nexo’s Earn Interest Product was an unqualified security, that is, a security that has not been cleared by the government for sale in the form of an investment contract. The product had offered up to 36% interest annually.
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Written By: Cointelegraph
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