California issues cease-and-desist against crypto lender Nexo

California’s Department of Financial Protection and Innovation issued a cease and desist against crypto lender Nexo Monday over its crypto interest-bearing accounts.

The cease-and-desist document alleges that Nexo’s Earned Interest Product accounts are securities and “have been offered and sold without prior qualification, in violation of California Corporations Code section 25110.”

“As of July 31, 2022, over 18,000 California residents have active Earn Interest Product flex- or fixed-term accounts; these accounts collectively hold investments totaling at least $174,800,000,” the filing said.

This story is developing.

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