Nexo Confirms Not Offer The High-Interest Rate Product 36%

Nexo group has been accused by US State Regulators’ Cease & Desist Letters for its new product. However, in the latest announcement on its blog, this company has defended against the accusation and confined that this product is not high yield-bearing accounts.

Nexo has launched its new product that allows customers to gain interest up to 36%. California and other states claim that is a high-interest rate, leading customers to risk if they do not aware of or access the terms and conditions thoroughly.

In the latest statement, the firm said that this yield is adequate as it is in “the overwhelming majority,” and “in the single-digit percentages.” This rate is logical with the “underlying sustainability of our business and security of customer assets in mind.”

The firm noted that this high bearing rate is just applied for Axie – AXS token, not for all assets that are in the network. The firm also emphasized that the real staking reward is currently close to 60%. Other set rates are still normal from 1.5% to 7%.

“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.” the blog cited

Regulators in California cited that Nexo had misled its customers about the high-rate product without giving any clear promotion information. At least 93,000 U.S. residents holding $800 million in Nexo could be affected by this lawsuit. Up to this point, this accusation is still controversial.

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Ken

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