California Department of Financial Protection and Innovation, cryptocurrency It issued a reprimand against crypto lender Nexo on Monday for its interest-bearing accounts.
Cryptocurrency Firm Faces Alleged Offering Unregistered Securities Product
The notice alleges that Nexo’s Earned Interest Product accounts are securities and are “offered and sold without prior qualification in violation of California Corporations Code section 25110.”
The following statements were included in the notice:
“As of July 31, 2022, more than 18,000 California residents have active Earned Interest Product flexible or fixed term accounts; These accounts collectively have a total investment of at least $174.8 million.”
Nexo Announced Last Month To Repurchase $50 Million NEXO Tokens
Nexo launched a $50 million token buyback initiative at the end of last month.
The Swiss-based lender has stated that it will purchase its native token worth $50 million in the next six months. This comes after a previous buyback when it raised $100 million between November and May.
On the subject, Nexo co-founder and managing partner Antoni Trenchev had this to say:
“In these difficult market conditions, NEXO Token, BTC and ETH acted in harmony with
Right now, our investors and customers need a solid foundation on which to walk, and our third token buyback provides that added stability as we emerge from the latest market volatility.”
*Not investment advice.
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