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Kansas Joins Multistate Securities Settlement Against Crypto Platform

Kansas Joins Multistate Securities Settlement Against Crypto Platform

Kansas Joins Multistate Securities Settlement Against Crypto Platform

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Kansas Insurance Commissioner Vicki Schmidt announced earlier this week the Office of the Kansas Securities Commissioner joined a multistate settlement against Nexo Capital, Inc, a cryptocurrency-related financial service company.

A consent order against Nexo was entered for offering and selling unregistered securities.

Kansas joins 27 other states in filing the order as part of a multistate taskforce with the North American Securities Administrators Association (NASAA). The order awarded $424,528.30 to Kansas for its part of the overall settlement of $22.5 million.

“The securities laws of Kansas exist first and foremost to protect Kansas investors,” said Commissioner Schmidt. “While the Department does not directly regulate cryptocurrency, we do have regulatory jurisdiction over securities products that are related to cryptocurrencies and will continue to enforce state law.”

 The company offered and promoted earned-income-products (EIP) to U.S. investors via its website and social media channels, suggesting that investors could obtain returns as high as 36% in some instances. Nexo was alleged to have failed to comply with state securities registration requirements, depriving investors of important information necessary to understand and evaluate the risks of investing in the EIP.

The Kansas Insurance Department has increased enforcement efforts by actively participating in the NASAA multistate taskforce groups focused on crypto-interest accounts. In 2022, a consent order was entered into with BlockFi as a result of these  multistate investigations.

If you suspect you have been a victim of securities fraud, please contact the Office of the Securities Commissioner at 785-296-3071 or file a complaint online at here.

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