New York State Attorney General Letitia James is clamping down on two unregistered crypto lending platforms. James ordered the offending crypto platforms, one of which may be Nexo, to cease operations in the state. She further requested that three other similar platforms provide information about their activities.
In a press release published on Monday, James said, “Cryptocurrency platforms must follow the law, just like everyone else.” The Attorney-General did not reveal the names of the offending platforms in her press release. However, Nexo released their own statement touching on the matter. The exchange’s email response to Forkast.News read:
“Nexo is not offering its Earn Product and Exchange in New York, so it makes little sense to be receiving a cease-and-desist for something we are not offering in N.Y. anyway.”
Nexo added that they intend to “engage” with the NYAG for added clarity on a perceived letter mixup.
In addition, earlier in the year, James went after stablecoin operator Tether and its affiliated crypto exchange Bitfinex. Both companies eventually settled an investigation into whether they attempted to cover up an $850 million malpractice, for $18.5 million. Furthermore, pursuant to the settlement, neither Tether nor Bitfinex owned up to any wrongdoing. However, stipulations in the settlement agreement mandated that they submit quarterly reports on their reserves for two years.
Image Credits: Pixabay
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