New York State Attorney General Letitia James speaks at a news conference after former U.S. President Donald Trump’s White House chief strategist Steve Bannon arrived to surrender, in New York, U.S., September 8, 2022.
Without access to these financial statements, state regulators say investors could not make informed investment decisions.
The crackdown comes as handful of recent crypto bankruptcies this year have left investors without access to their funds.
Celsius, which offered similar interest-bearing accounts, filed for bankruptcy this summer after freezing customer funds in June.
In February, Nexo prevented U.S. investors who had not yet opened a Nexo account from investing in the Earn Interest Product or adding additional cryptocurrency into their accounts.
“We have been working with U.S. federal and state regulators and understand their urge, given the current market turmoil and bankruptcies of companies offering similar products, to fulfill their mandates of investor protection by examining past behavior of providers of earn interest products,” the company said in a statement.
“As the recent months have clearly underlined, Nexo is a very different provider of earn interest products, as showcased by the fact that it did not engage in uncollateralized loans, had no exposure to LUNA/UST, did not have to be bailed out, or needed to resort to any withdrawal restrictions.”.