Crypto platform Nexo is being sued by eight U.S. state securities regulators representing New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington, and Vermont.
New York Attorney General Letitia James says Nexo and Nexo Capital failed to register with the state’s securities and commodities brokers or dealers and lied to investors about their registration status.
James seeks to compel Nexo to forgo the revenue from its Earn Interest Product crypto deposit accounts and provide financial restitution to customers who used it.
Nexo advertised that the product could provide users with yields of up to 36%, CNBC reported Monday.
The New York Office of the Attorney General says it warned Nexo to register as a securities and commodities broker or dealer, but it failed to do so. The office did not disclose when it provided those warnings.