Nexo responds to the bans issued by multiple states in the U.S.: No high-yield products offered

According to Chain Catcher news and reported by Cryptobriefing, regulatory agencies in eight states, including California, have accused Nexo of offering products with returns of up to 36% without informing customers of the risks. In response, Nexo issued a statement claiming that its promised interest rates are "single digits" and are not as high as the regulators allege. Nexo added that these rates are intended to "consider the fundamental sustainability of the business and the safety of customer assets," and are classified as low-risk products, with only one product, Axie Infinity's AXS, offering a 36% interest rate, which is considered an "exception."

Chain Catcher previously reported that on September 27, regulatory agencies from California, Kentucky, New York, Maryland, Oklahoma, South Carolina, Washington, and Vermont announced a ban against the crypto lending platform Nexo, requiring it to stop offering interest-earning products to customers. The regulators stated that since June 2020, Nexo has "provided and sold unqualified securities to the public and local residents in the United States in the form of interest-earning product accounts." They also sued Nexo for acting as an "unregistered securities broker or dealer," demanding that it cease offering such products and that they would take action against it. (source link)