Nexo: the legal setbacks are getting tough for the platform – BeinCrypto France

Nexo was sued by a prosecutor earlier this week. However, other authorities come to meddle in the matter.

The beginning of a big sweep for the lender?

Nexo’s legal troubles seem far from over. While the New York State Attorney General sued the crypto platform this week, the initiative seems to have given ideas to other authorities. The company was pinned in only one jurisdiction of the United States, but the phenomenon could grow more and more.

Indeed, seven other prosecutors have seen fit to attack the company in turn. According Finance Feeds, the states of California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont have announced the launch of an investigation concerning the platform. The accusations remain the same: Nexo allegedly sold assets without registering with the competent authorities. However, there is no question of going it alone, since all the prosecutors want to join forces to move the case forward as quickly as possible and apply the necessary sanctions.

The eight states also want to clarify the services offered by the company. Indeed, Nexo reportedly offered annual returns considered too impressive to be legal.

In a joint statement, the eight US state regulators pointed out that Nexo promotes annual interest rates of up to 36% on crypto deposits, which are significantly higher than rates on short-term fixed income securities, investment grade or bank savings accounts.

Extract from Finance Feeds about the returns offered by Nexo

For the moment, the crypto platform has still not officially pronounced on the lawsuit against it. Time will therefore tell us if Nexo intends again to leave the solicitations of justice unanswered.

Nexo keeps moving forward despite a bleak future

Despite the accusations made against her, the lending platform does not cut short her projects. This would have bought a share in the American bank Hulett Bancorp during the day of Wednesday, September 28. An initiative which, through this establishment, should allow it to open new services while extending more easily across the United States. Also, Nexo shares got a real boost following the news.

Source: Nexo Twitter account

However, according to analyst Mike Burgensburg, the celebrations could be short. Indeed, following Kentucky’s involvement in the case, Nexo could be considered insolvent. The state in question would have conducted the investigation before announcing that the platform would be unable to monetize the tokens it holds. American justice could therefore frighten customers and thus precipitate the fall of the company.

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Nexo: the legal setbacks are getting tough for the platform – BeinCrypto France


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