The New York Attorney-General’s Office published redacted cease and desist letters meant for two crypto lending platforms. While the names were blocked within the text, they failed to change the names of the documents that were titled 'Microsoft Word - Celsius Letter 10.14. 21' and 'Microsoft Word Nexo Letter, respectively.
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The office of the Attorney General returned the documents after re-presenting 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 loans and borrowing products in the state and that there was likely a mix-up.
The letters claim that the companies are essentially virtual accounts offering investors a rate of return on their deposits and lending platforms must register with the Office of the Attorney General OAG if they are operating within the state or offering products to New Yorkers. Letitia James, the New York City Attorney General, stated 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 are Celsius and Nexo. It is also unclear which lending platforms were asked to answer questions. Should one of the companies actually be Celsius, it would not be a surprising move by the Attorney General's office as Celsius is going through similar situations in New Jersey, Texas and Kentucky.