NEW YORK — New York's Attorney General Letitia James is taking on cryptocurrency.
The AG says New York is joining seven other states in suing two companies for lying to their investors about their registration status.
The goal of the lawsuit would be for Nexo Inc. and Nexo Capital Inc. to forfeit any profits they made prior to registering with the state as securities and commodities brokers or dealers.
“Cryptocurrency platforms are not exceptional; they must register to operate just like other investment platforms,” James said.
“Nexo violated the law and investors’ trust by falsely claiming that it is a licensed and registered platform. Nexo must stop its unlawful operations and take necessary action to protect its investors.”
In New York, any company that deals with securities and commodities must properly register with the AG's office.
According to the AG's office, about 10,000 New Yorkers have accounts with Nexo.
The other states that sued included California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont.
