Credit lending company Nexo Financial has denied allegations that it provided unregistered services to New Yorkers by Attorney General Letitia James.
Attorney General James ordered two unnamed crypto companies to cease operations on Monday, citing refusal to register a company in New York and engage in illegal activities.
It has been revealed that Crypto lender Nexo is one of two companies to receive a termination and withholding order from the Attorney General’s Office. A Nexo spokesperson, who declined to be involved in illegal transactions, said:
“Nexo does not display its earnings and exchange products in New York, so there is no point in getting a termination and cancellation that we don’t show in New York anyway.”
According to Nexo, the allegations of the unregistered business in New York represent a “mixture of the recipients of the letter.” The company also confirmed the use of IP-based geo-blocking on the platform, which prevents New Yorkers from participating in services not registered locally:
“However, we will interact with NY AG and seek clarification. Our firm employs first-class legal counsel from both US law firms and our in-house team of attorneys.”
Additionally, the company also confirmed that Nexo’s terms of use explicitly state: “We do not offer our server products and exchanges in New York.”
To further protect New York citizens from significant hidden dangers, the New York State Attorney’s Office simultaneously sent three additional crypto platforms to provide information about their activities and products.
The termination order is supported by the Martin Act, which requires businesses to register before offering or selling securities or merchandise in New York. “My office is responsible for ensuring that industry players do not use unsuspecting investors,” James said.
Subject: New York corporations ask governor to deny permission to mine cryptocurrency
A group of local New York companies have signed a letter asking New York Governor Katie Hochhol to refuse permission to reuse inactive fossil fuel power plants for crypto mining.
The proposal requires an environmental impact assessment to restart the Greenidge power plant and Fortistar North Tonawanda facility, which have been closed to reduce greenhouse gas emissions in New York City.
