New York Attorney General Letitia James is investigating crypto lending platforms, calling them "high-risk virtual currency schemes."
James has ordered two unnamed companies to cease and desist operations for residents of New York. She has ordered three other companies to provide information to her office.
While the two companies ordered to cease operations were not named, unredacted file names of the letters name the two companies as Nexo and Celsius. Nexo said in a tweet that it does not offer its Earn product to New Yorkers.
These products are essentially unregistered interest-bearing accounts, James alleged. "Virtual or 'crypto' currency lending platforms are essentially interest-bearing accounts that offer investors a rate of return on virtual currencies that are deposited with them."