BTC lender Celsius denies receiving an injunction from NYAG Letitia James a day after ordering two crypto lenders to shut down for 10 days, and even asked three others to provide information before November 1NS. The crypto lender wrote in a Medium post:
“Celsius received a request for information (instead of a shutdown) from the NY government.”
In a press release yesterday, the New York Attorney General’s Office targeted several crypto companies that have not registered their securities offerings under the New York Martin Act, and the press release is also accompanied by two cease and desist letters providing more information about the companies that continue to operate. However, one letter reads NEXO and the other C strongly suggests that these lenders have been directed to cease operations. Nexo, on the other hand, confirmed that it had received the order, but called it a “mix”.
“Nexo does not sell its monetization and exchange products in New York, so it makes sense to obtain a cease and desist order for an item that we do not sell in New York.”
Celsius has just closed a $ 400 million financing round after it was valued at over $ 3 billion. Understood. BlockFi is also affected. The startup uses the slogan “Open your own bank” and enables people to earn interest on the cryptocurrency they hold as they advertise an annual return of up to 17% through a rate based on their wealth. In addition to major platforms like ETH and BTC, users can deposit Celsius tokens, stablecoins and other assets. Celsius lends these coins to give depositors a piece of their action.
Income products like these are classified as securities at the federal and state levels, NYAG explains, but that doesn’t mean the companies would go under without a fight. Coinbase was planning its LEND product, suggesting it would be ready to go to court if necessary, but then the SEC threatened a lawsuit and Coinbase abandoned the product. According to the NYAG letter requesting information, the office wanted all the company information, names, benefits, and headquarters, and wanted a product description with an explanation of how assets could be loaned or held.
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