Eight states file cease and desist order against the crypto platform Nexo.
They claimed that Nexo offered interest earning accounts without registering the customers into their platform.
Without insight to these financial records, state regulators contend investors cannot make stated investment decisions.
The filings also claimed that Nexo mispresented the accounts and told the investors that they are a registered platform.
Nexo states that only one asset earns an interest rate at 36% without any advertisement.
It also tells that one popular coin, bitcoin also earns yield in single digit percentages.
Celsius which offered similar services filed for bankruptcy.
The terms and conditions of Nexo said the company could deploy customer assets at its "sole and absolute discretion."
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In a statement, Nexo tried to differentiate it from other platforms that had run into financial issues.
According to studies, Nexo didnot involve themselves in any sort of uncollateralised loans.