Crypto Lending Platform Nexo Responds to Charges by Eight U.S. State Regulators over Its Interest-Earning Products

Encrypted lending platform Nexo issued a statement in response to eight U.S. state regulators accusing it of offering high 36% return products without informing customers of the risks. Nexo stated that most of its promised interest rates are single-digit percentages, only for one asset Paying an interest rate of 36%, that is AXS from Axie Infinity, but in reality AXS currently has a staking reward close to 60% and does not advertise this percentage in its marketing. In addition, since the U.S. Securities and Exchange Commission issued guidance on BlockFi’s income products in February this year, Nexo has voluntarily stopped new users of income interest products, and has also stopped providing new balance products to existing customers. Foresight News previously reported yesterday that eight states including California ordered Nexo to stop offering interest-earning income-type products.