Nexo confirms receiving C&D order from NY Attorney General: what you need to know

By: Daniela Kirova
Daniela Kirova
Daniela was born in Bulgaria, grew up in Chicago, and then moved to Michigan to attend the University of… read more.
on Oct 21, 2021
  • In the last 24 hours, Celsius lost 4.8% in value, while Nexo’s shares registered a gain of 4.5%.
  • The AG’s order to terminate operations was issued based on the Martin Act
  • Businesses ask NY governor to ban crypto miners from city’s former fossil-fuel power plants

Nexo Financial confirmed being one of the two crypto lending firms to receive the cease and desist order from Attorney General Letitia James’ office. Previously, it was reported Attorney General James had ordered two unnamed crypto lenders to terminate operations on Monday, October 18.

She claimed they failed to register the business in New York and were performing illegal activities.

Nexo’s proactivity pays off

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Crypto lender Nexo has been quite proactive in the matter, releasing comments to the media. The other lender was rumored to be Celsius. Nexo’s coin price registered a gain of 4.5% following the news and was seen trading notably higher Thursday morning.

Nexo denied involvement in any illicit activity. A Nexo spokesperson said in an official statement:

Nexo is not offering its Earn Product and Exchange in New York, so it makes little sense to be receiving a C&D for something we are not offering in NY anyway. Still, we will engage with the NY AG and seek clarity with regards to what appears to be a case of mixing up the recipients of the letter. We use IP-based geo-blocking. Our company retains top-tier legal counsel both from US-based law firms and our in-house legal team and we are fully prepared to address any questions regarding our products.

Celsius published an entry on their official blog:

Celsius has not received a cease and desist order in NY. Celsius is working closely with regulators. Regulation is vital to Celsius’ continued success and growth, and to the cryptocurrencies space as a whole.

NY AG office requests information from another three exchanges

The New York State Office of the Attorney General has ordered another three crypto platforms to provide information about products and services in order to protect New Yorkers further from critical undisclosed risks.

The AG’s order to terminate operations was issued based on the Martin Act, which requires all businesses to register before selling or launching commodities or securities in New York.

Local businesses demand environmental impact assessment

In related news, a group of local New York businesses co-signed a letter to New York State Governor Kathy Hochul, asking her not to allow crypto miners to repurpose the city’s former fossil-fuel power plants to host their activity.

They demanded an environmental impact assessment with regard to restarting the Fortistar North Tonawanda and Greenidge Generating Station plants, which closed down in an attempt to limit New York’s greenhouse gas emissions.

This story has been updated to reflect Celsius’ comments.

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