Cryptocurrency lending platform Nexo may be sued by multiple securities regulators for violating securities laws

Chain Catcher News, the cryptocurrency lending platform Nexo is currently facing joint enforcement actions from securities regulators in several states including California, New York, Washington, Kentucky, Vermont, South Carolina, and Maryland. This is due to Nexo's Earn Interest Product (EIP) potentially violating securities laws.

Securities regulators stated that since June 2020, Nexo has "offered and sold unqualified securities to the public and local residents in the U.S. in the form of Earn Interest Product accounts." They have also accused Nexo of acting as an "unregistered securities broker or dealer," demanding that it cease offering such product services and indicating that actions will be taken against it. (Bitcoin.com)