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DFPI Joins Other State Securities Regulators to Take Action Against Crypto Lender Nexo Group
Summary: According to the California Department of Financial Protection and Innovation (DFPI) website, the agency announced today that it has joined seven other state securities regulators to take action against crypto lender Nexus Group for failing to register its Earn Interest Product accounts. These accounts are essentially crypto interest accounts, which allow investors to earn interest ...
According to the California Department of Financial Protection and Innovation (DFPI) website, the agency announced today that it has joined seven other state securities regulators to take action against crypto lender Nexus Group for failing to register its Earn Interest Product accounts.
These accounts are essentially crypto interest accounts, which allow investors to earn interest on crypto asset deposits.
DFPI has decided that Nexo operates these accounts without having registered them as securities. Securities registration is important because it provides investors with material information, such as risks, crucial to their decisions surrounding whether or not to open crypto interest accounts.
DFPI’s action is part of a larger effort to investigate companies with crypto interest accounts. Companies such as BlockFi Lending LLC, Voyager Digital LLC, and Celcius Network Inc previously faced similar actions by DFPI.
Author: Katie Lin
Tags: crypto interest accounts,DFPI,Nexo
Link: DFPI Joins Other State Securities Regulators to Take Action Against Crypto Lender Nexo Group [Copy]
