Nexo co-founders address recent cease and desist orders from US state regulators

Nexo co-founders Antoni Trenchev and Kalin Metodiev hosted an AMA on Oct. 4 in which they addressed recent cease and desist orders issued by several U.S state regulators. Given the turmoil of the last few months, the pair also tabled questions about the platform’s robustness.

At the end of September, several U.S. state regulators launched legal action against Nexo over its Earn Interest Products. California’s Department of Financial Protection and Innovation (DFPI) said its investigations follow similar actions against BlockFi, Voyager Digital, and Celsius. The latter two have filed for bankruptcy. DFPI Commissioner Clothilde Hewlett commented that Nexo’s earn products are unregistered securities, and she seeks to protect Californians from the risks involved with such offerings.

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