The Office of Attorney General of New York has issued cease and desist orders to two cryptocurrency lending platforms and asked for more information from three more such platforms for continuing their business.
These were summoned under the Martin Law, where they’re subjected to be operating without complying with local laws. Two of them are identified as Nexo and Celsius Network.
NYC OAG Barring Crypto Lending Platforms
Two platforms involved in the cryptocurrency lending business are summoned by the Office of Attorney General of New York, to halt their operations in the state until clearance. Three other platforms of a similar kind were asked to provide more information on their services before proceeding.
This notice was passed by Letitia James, who won a court order weeks before to close a cryptocurrency exchange named Coinseed. In a redacted notice, she said the office “was in possession of evidence of unlawfully selling or offering for sale securities and/or commodities”.
The document was redacted at crucial sections, yet, it was known that Nexo and Celsius Network are two of those who received cease and desist orders.
Three other platforms were asked to furnish more information on their services, which includes “data related to loan-to-value ratios, collateral options, and payout processes, the minimum and maximum amount that can be borrowed, the lending rate and all fees payable.”
The Office of Attorney General has made this order under the New York’s Martin Act, which gives the office power to investigate any securities trading company in the state.
Issuing the notice on Monday, OAG Letitia James said;
“Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately.”
While Celsius Network hasn’t made any comment yet, Nexo responded to Coindesk’s request for information and said they’re not offering any services to New York customers, so unsure why they’ve received the notice. Yet, they’re proceeding to “engage with the NY AG as this is a clear case of mixing up the recipients of the letter.”