No real surprise here, but crypto-lender Nexo ($NEXO.X) has been hit by various forms of cease-and-desist from the States of California, Kentucky, New York, Oklahoma, South Carolina, Washington, and Vermont.
The scrutiny against Nexo varies from failing to register to inadequate representation and disclosure of risks. NEXO has a tiered reward structure for putting cryptocurrency into their Earn Interest Program, generating interest and passive income.
However, after BlockFi’s record $100 million fine, NEXO almost immediately issued a voluntary stop to onboarding new US clients into the Earn Interest in February 2022.
Coincidentally, one day after the eight State pounce on Nexo hit the news wire on CNBC, Nexo announced it acquired a stake in a US bank – Summit National Bank. In an e-mail to customers, Nexo says the OCC (Office of the Comptroller of the Currency) reviewed the partnership.
Nexo’s co-founder, Kalin Metodiev, is now a board member of that bank.
Nexo also issued a response via its company blog titled: Nexo’s Stance on US State Regulators’ Cease & Desist Letters Regarding Our Earn Product.