Cryptocurrency lending company Nexo Financial denies allegations of offering unregistered services to New Yorkers brought by Attorney General Letitia James.
Attorney General James led two crypto loan companies to cease operations On October 18, citing the failure to register the company in New York and the conduct of illegal activities.
Cryptocurrency lender Nexo is revealed to be one of two companies to receive the cease and desist order from the Attorney General's Office. Denying its involvement in illegal operations, the Nexo spokesperson said:
"Nexo is not offering its Earn and Exchange product in New York, so it makes little sense to receive a cease-and-desist order for something we are not offering in New York anyway."
According to Nexo, the accusations of operating an unregistered business in New York "appear to be a case of confusion of the recipients of the letter." The company also confirmed the use of IP-based geoblocking on its platform that prevents New Yorkers from participating in services not registered locally:
“Still, we will engage with NY AG and seek clarity. Our firm has top-notch legal counsel from both US-based law firms and our in-house legal team. "
In addition, the company has also highlighted that the Nexo Terms and Conditions explicitly state, "We do not offer our Earn and Exchange product in New York."
To further protect New Yorkers from significant undisclosed risks, the New York State Attorney General's Office has managed three more crypto platforms to provide information about their activities and products.
The shutdown order is backed by the Martin Act, which requires companies to register before offering or selling securities or commodities in New York. "My office is responsible for ensuring that industry players do not take advantage of unsuspecting investors," said James.
Related: New York Businesses Ask Governor to Deny Permits for Cryptocurrency Mining
A group of local New York businesses signed a letter asking New York State Governor Kathy Hochul to deny permits to reuse the city's defunct fossil fuel power plants for cryptocurrency mining.
The proposal calls for an environmental impact assessment of restarting the Greenidge generating station and the Fortistar North Tonawanda plants, which were closed to control New York's greenhouse gas (GHG) emissions.
Post navigation
