Nexo is a well-known cryptocurrency lender in the market now and it is facing eight lawsuits from different states, with New York's Attorney General speaking up against the company's services. Allegedly, the company is not registered to sell securities on its offers, but it claimed that it is eligible to do it with many already availing of the service.
Nexo Lawsuit from Eight States, New York AG
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An illustration picture taken in London on May 8, 2022, shows a gold plated souvenir cryptocurrency Tether (USDT) coin arranged beside a screen displaying a trading chart.
New York Attorney General Letitia James released a statement on her Twitter page that the Nexo crypto lending company is facing a lawsuit from her office on illegal ventures it presented to the public. The company is known for crypto lending, but not as an investment company that sells securities and a guarantee to grow one's money with them.
The company claimed that it is registered and has all the necessary requirements to push with services like its "Earn Interest Product," but AG James said that they are not eligible to offer it.
New York's Office of the Attorney General also released a statement, further saying that the company is defrauding investors and misleading the public into thinking that they are set to offer this service.
The statement also said that seven other states are also pushing for administrative action including California, Kentucky, Maryland, Oklahoma, South Carolina, Washington, and Vermont.
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Nexo's Securities and Misleading Marketing
Nexo allegedly misled the public and its investors that it is registered and duly compliant with the country's investment business, hence its services regarding securities and growing one's portfolio. However, the recent lawsuit from eight states in the country are suggesting otherwise.
Cryptocurrency Lawsuits Now
Cryptocurrency is a known digital currency that exists in the blockchain, and essentially, it is money for many people used for different transactions and trading in the current market. Its success also brings massive lawsuits for its many transactions as some are fraudulent or misleading to the public, and many scams are already caught by law enforcement.
However, some lawsuits and cases present in the crypto world now include legitimate companies which operate with shady deals and undertakings with different entities present.
One example would be the Tornado Cash company which are allegedly assisting criminals in laundering money through their platform and helps keep their transaction secret and unknown to many. The Dutch government already seized the company earlier this year to prevent further alleged criminal activities from happening, as well as launching an investigation into its transactions.
Nexo's lawsuit is fraudulent and misleading in nature, with the New York attorney general already releasing a statement that shares the information for all to know and be aware of the company. Seven other states are also launching lawsuits against Nexo for its misleading marketing of its securities.
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Written by Isaiah Richard
