On Monday, eight states declared they will sue the cryptocurrency lending platform Nexo Group.
State regulators in California, Kentucky, New York, Maryland, Oklahoma, South Carolina, Washington and Vermont
Nexo provided interest-earning accounts to customers without first designating them as securities and making the necessary disclosures.
In the documents, Nexo is also accused of deceiving investors by claiming to be a regulated and registered platform.
According to Nexo's terms and conditions, the corporation has "sole and full discretion" to use customer assets.
According to the Vermont ruling, more than 93,318 Americans had put more than $800 million into these accounts as of July 31, 2022.
The Attorney General of New York sued the cryptocurrency site after discovering that more than 10,000 of its citizens were impacted.