The New York Attorney Generals Office published redacted cease and desist letters meant for two crypto lending platforms. While the names were blocked out within the text, they failed to change the names of the documents which were titled, 'Microsoft Word - Celsius Letter 10.14.21' and 'Microsoft Word - Nexo Letter,' respectively.
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The Attorney General's office then republished the documents after changing the titles to no longer include the names of the crypto platforms.
One of the companies named in the title of one of the letters, Nexo, responded to the exchange on Twitter saying that the company doesn't even offer is lending and borrowing products in the state and that there was likely a mix-up.
The letters claim that the companies are "essentially interest-bearing accounts that offer investors a rate of return on virtual currencies that are deposited with them" and that "lending platforms must register with the Office of the Attorney General (OAG) if they are operating within the state or offering their products to New Yorkers."
The Attorney General of New York, Letitia James, said that these types of platforms must follow the law and that they have already told two companies to shut down.
“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," said James.
It is unclear if the two companies she refers to here are actually Celsius and Nexo. It is also unclear which three lending platforms were asked to answer questions. Other companies that offer similar services include BlockFi, Gemini, Crypto.com and more.