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California submitted a warrant against the Nexo interest account, saying that this is already the 8th state, which took measures.

the Department of Financial Protection and Innovation of the state claims that the crypto-percent account is unskilled securities; Nexo limited the accounts after the settlement of Blockfi with SEC.

The California Department of Financial Protection and Innovation (DFPI) submitted an order to ban and abstinence in relation to the NEXO cryptocreditation platform as part of an ongoing investigation of the activities of companies offering interest accounts of crypto activists. The agency claims that it joins the regulators of seven other American states in taking measures against the company. According to CNBC, we are talking about Kentukka, New York, Maryland, Oklahom, South Carolin, Washington and Vermont. DFPI in its statement claims that the Nexo's Earn Interest Product product was unskilled security, that is, a security that was not allowed by the government to sell, in the form of an investment contract. The product offered up to 36% per annum. The product was unavailable for new users in the USA since February 19, and existing American account owners could not pay new deposits to their accounts in connection with a fine of $ 100 million, imposed on Blockfi, the securities and exchanges commission after it recognized Blockfi percentage unregistered security. However, the DFPI statement states that the owners of Nexo accounts with automatic extension continued to receive interest payments. A related to this: against the background of the Nexo crypto-winter, it allocates an additional $ 50 million per ransom program. In July, DFPI announced that she would begin an investigation against companies offering the so-called crypto-percent accounts. DFPI Commissioner Klotilda Hughlett said in a statement announcing the actions against Nexo: "These cryptocenter accounts are securities and are subject to protection of investors in accordance with the law, including adequate disclosure of information about the risk associated with them." Nexo told Cointelegraph in the statement: “We work with the US federal regulators and state regulators and understand their desire, given the current shocks in the market and bankruptcy of companies that offer similar products, to fulfill their responsibilities for the protection of investors, having studied the past behavior of interest suppliers. [ ] As the last months clearly showed, Nexo is a completely different supplier of interest products, as evidenced by the fact that the company did not engage in unstoppable loans, had no connections with Luna/UST, did not need pledged and did not resort to the restrictions on the removal funds. On August 8, DFPI issued a decision against Celsius Network, arguing that the company and its general director Alex Mashinsky were misleading and lost information in their proposals for cryptocurrency interest accounts. Celsius filed a bankruptcy application on July 14. DFPI also submitted an order to ban and abstinence against Voyager Digital on June 3, about a month before this company filed a bankruptcy statement. On September 23, the Governor of California Gavin News imposed a veto on the bill on the creation of the state system of licensing and regulating digital assets, calling this step "premature."

#SECURITY#REGULATION
9/27/2022