Home Technology Eight states sue crypto lender Nexo over security sales and misleading marketing

Eight states sue crypto lender Nexo over security sales and misleading marketing

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Eight states sue crypto lender Nexo over security sales and misleading marketing

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Illustration of a digital coin on fire.
Illustration by Alex Castro / The Verge

New York Attorney General Letitia James is suing crypto company Nexo, alleging that the company misled customers by saying it was registered to sell securities and commodities and that it wasn’t approved to offer services like its “Earn Interest Product” that promised returns on deposited crypto. It’s the latest legal move in a fight between regulators and crypto companies looking to offer interest-earning accounts, often insisting that they shouldn’t be classified as securities.

Seven other states — California, Kentucky, Maryland, Oklahoma, South Carolina, Washington, and Vermont — are also filing “administrative actions” against the company, according to a press release from the New York AG. The release also quotes James as saying:…

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