Pile of cryptocurrency coins
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Crypto firms Nexo Inc. and Nexo Capital Inc. are being sued by New York state’s attorney general and seven state securities regulators for registration violations.

The state attorney general filed a lawsuit in New York County State Supreme Court alleging that Nexo, which is based in the Cayman Islands, promoted and sold securities — interest-bearing crypto accounts — that promised high returns without registration.

The lawsuit also alleged that the firm operated a crypto-trading platform, the Nexo Exchange, without registration.

Regulators in seven states — California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont — also filed administrative actions against Nexo, following a joint investigation.

The allegations have not been proven.

New York’s lawsuit is seeking restitution for investors, disgorgement of revenues generated by alleged unlawful conduct and permanent injunctions.

California’s state regulator, the Department of Financial Protection and Innovation, said the action is part of a broader effort against unregistered crypto lenders and follows several similar actions.