Cease & Desist Order Issued Against 2 Crypto Lending Firms - U.S. Attorney General.

Cease & Desist Order Issued Against 2 Crypto Lending Firms - U.S. Attorney General.

2021-10-20 | Eddy Morgan

Cease & Desist Order Issued Against 2 Crypto Lending Firms - U.S. Attorney General.

Attorney General James' office has issued a cease and desist order to two crypto lending businesses, according to Nexo Financial. Attorney General Letitia James has accused cryptocurrency lending business Nexo Financial of providing unlicensed services to New Yorkers. Attorney General Letitia James ordered the closure of two unidentified crypto lending organizations on Monday, alleging a failure to register the businesses in New York and illegal activity. Nexo, a cryptocurrency lender, is one of two firms to receive a cease and desist notice from the Attorney General's office. A Nexo spokesman denied the company's involvement in illegal operations, saying: "Given that Nexo does not provide its Earn Product and Exchange in New York, obtaining a cease and desist action for something we don't offer in New York makes little sense." The claims of operating an unregistered business in New York, according to Nexo, "appears to be a matter of mixing up the letter recipients." The business also acknowledged that its platform employs IP-based geoblocking, which prohibits New Yorkers from using locally unregistered services: Furthermore, the firm has said that "we do not provide our Earn product and Exchange in New York," as stated in the Nexo Terms and Conditions. The New York State Attorney General's Office has requested three additional crypto platforms to give information about their operations and goods in order to safeguard New Yorkers from substantial unknown hazards. The order to cease operations is based on the Martin Act, which requires companies to register before offering or selling securities or commodities in New York. "It is my office's responsibility to ensure that industry players do not take advantage of inexperienced investors," James stated. A collection of local New York companies signed a petition urging New York State Governor Kathy Hochul to refuse permits for crypto mining at the city's decommissioned fossil-fuel power facilities. The proposal calls for a study of the environmental effect of reopening the Greenidge Generating Station and the Fortistar North Tonawanda facilities, which were shut down to reduce greenhouse gas emissions in New York.

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