This article comes fromDecrypt, original author: Stacy Elliott

Odaily Translator |

This article comes from

, original author: Stacy ElliottOdaily Translator |

California and other state securities regulators filed a lawsuit on Monday against Nexo Group, the parent company of encrypted lending platform Nexo, alleging that the company's Earn Interest Product account is an unregistered security.

The California Department of Financial Protection and Innovation (DFPI) stated in a press release that

, "These encrypted interest-bearing accounts are securities, and investors' rights and interests should be protected in accordance with the law, including full disclosure of the risks involved."

A press release issued by DFPI mentions that Nexo’s 36 percent interest rate is “significantly higher than the interest rates on short-term investment-grade fixed-income securities or bank savings accounts.”、Nexo CEO Antoni Trenchev told Decrypt that the company has been working with U.S. federal and state securities regulators to bring its interest-bearing products into compliance.、Trenchev said, “Since February 2022 when the U.S. Securities and Exchange Commission (SEC) provided guidance on the Earn product (known as “The BlockFi Order”), Nexo has voluntarily stopped offering the Earn Interest Product to new customers in the United States, and the previous US customers cannot earn interest on new deposits. Nexo is committed to finding a clear path forward, ideally at the federal level (regulatory clarity), on how to provide regulated products and services in the US."、VermontOklahomaSouth CarolinaKentucky

California and Maryland joined California securities regulators in issuing restraining orders against Nexo. As of press time,Nexo's license and registration information displayed, which is registered to operate in California, Oklahoma, South Carolina and Maryland.

Washington State has not yet issued a restraining order against it, but hasstatement of charges. On Monday afternoon, New York State Attorney General Letitia James announced that the state is indicting Nexo on, among other charges, "falsely representing that it complies with applicable regulatory and licensing requirements."In June of this year, the crypto lending space saw upheaval. At the beginning Celsius announced the suspension of customer withdrawals, exchanges and transfers, and then Voyager Digital sent the insolvent hedge fund Three Arrows Capitalissue a notice of breach