Nexo expressed its “surprise” at these actions. New York has filed Martin Act charges against Nexo, demanding disgorgement of earnings and barring Nexo from New York. Washington is also fining Nexo $1 million South Carolina is fining Nexo $625,000 Maryland is fining Nexo $5,000 per violation.

The eight states issued cease-and-desist notices against Nexo offering Earn. Nexo falsely claimed that it had “gone the extra mile in ensuring compliance with the applicable regulatory frameworks.” Nexo is now being sued by eight states - New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington, and Vermont - over its “Earn Interest Product,” which offered up to 36% interest to ordinary retail investors.Įarn was utterly unregistered as a security with any US federal or state authority. Many observers have been wondering if they’d be the next to collapse after CeFi firms Celsius and Voyager. Nexo is a CeFi (centralized DeFi) lender - they play the crypto markets and offer Ponzi-level returns to retail investors, if you just hand them your cryptos. Crypto keeps insisting it can operate outside the rules - but that only works for so long. When you take someone’s money and promise them you’ll pay them back more than they put in, that’s an investment contract - a security - and you need to register with state regulators and the SEC. “when crypto people say decentralized they really just mean all the rich people who control it never have to meet up and can live anywhere, it’s like a job posting saying it’s 100% remote, but for the rich” - deep dish peat moss Sign up on Amy’s blog to see every new post she makes as it goes up, and click here and enter your email address for every new post on David’s blog as it goes up.David has signed author copies of his books for sale.Our patrons can also get a couple of “Bitcoin: It Can’t Be That Stupid” stickers just by messaging one of us and asking.Our work is funded by our Patreons - here’s Amy’s, and here’s David’s.

Totally free kindle drm removal