A company accused of selling unregistered securities in a digital asset investment will pay Illinois investors $424,500 as part of a $45 million multistate settlement.
Yuichiro Chino/Getty ImagesA company accused of selling unregistered securities in a digital asset investment will pay Illinois investors $424,500 as part of a $45 million multistate settlement.
Nexo Capital has been investigated by the Illinois Secretary of State’s Bureau of Securities, other states and the Securities and Exchange Commission regarding the sale of unregistered securities in digital asset investments.
Through the company’s Earn Interest Product account, consumers were able to deposit crypto assets into Nexo and earn interest on their deposits. Alexi Giannoulias, Secretary of State, said the quoted interest rate was much higher than those offered by banks and investment institutions.
The state alleged that Nexo failed to disclose all necessary information about its investments, including risks.
Giannoulias said Nexo has agreed not to offer accounts unless they are properly registered. The company will notify investors to withdraw their assets by April 1st.
“Crypto assets are not exempt from state and federal regulations, and financial services associated with them must comply with these regulations to ensure consumers are protected,” Giannoulias said. I’m here. “We will continue to investigate interest-bearing cryptocurrency accounts and take action against companies that provide accounts without complying with state law.”
Investors should always ensure their financial advisors are properly registered with the state, he said.
