Switzerland-based cryptocurrency platform Nexo has become the new target of the state of California’s fight against crypto asset accounts with algorithmic interest system.
The California Department of Financial Protection and Innovation (DFPI) has ordered a “quit and withdraw” against Nexo as part of an ongoing investigation against cryptocurrency companies promising high-interest payments. State of California, which is a part of the process in question. new York, Kentucky, Oklahoma, Washington It is stated that it works in cooperation with other major states such as
36% per year Nexo assets, which offer such a high interest rate, were classified as unqualified, unrequited and not issued under government approval, according to DFPI research. terra (LUNA) Worried that these interest products, which have a similar structure, will cause similar problems in the future, the authorities made the following statements:
These crypto interest accounts are securities and are subject to investor protection under the law, including adequate disclosure of the associated risk.
Although the authorities demanded that the activities be withdrawn or at least greatly slowed down until more detailed reporting on the high interest system in question, everything is fine and there is no situation that will make customers suffer, according to the Nexo team. Even after the collapse of Terra, another organization from the Nexo team that went bankrupt, Celcius NetworkThere was even a statement that they had the net capital and power to buy all the assets of .
Turkey including worldwide More than 5 million users Nexo company, which is located in Istanbul, made the following statements against the latest warnings from the state of California:
We work with US federal and state regulators and understand their willingness to fulfill their investor protection duties, given the current market turmoil and the bankruptcy of companies offering similar products. However, when we look at the turbulent past, it can be seen that Nexo has successfully overcome the Luna crisis and our company’s interest system works very differently. It should also be noted that we have not imposed any restrictions on users’ withdrawal requests so far.