Just-In: Crypto Giant Nexo Sued for Blocking $126M User Fonds
According to a recent report, investors are suing Nexo, a crypto lender, in the London High Court. They claim Nexo prevented them from withdrawing more than $126 million in cryptocurrency. Three investors, Shane Morton and Jason Morton, claim Nexo blocked them from withdrawing more than $126 million in cryptocurrency.
According to the Mortons, after being threatened with not being able to withdraw their cryptocurrency, they were forced to return millions of dollars of Nexo’s native token at a lower price.
Read more: Nexo’s new card for crypto-using
The three of them together had tens to millions of dollars in cryptocurrencies such as Bitcoin, Pax Gold and Stellar as well as a vast amount of Nexo Tokens (Nexo’s native cryptocurrency) stored on the exchange.
Crypto Lender Nexo Responds to Allegations
Nexo responded that the lawsuit was “opportunistic” since it was filed in October despite the fact that the incidents occurred between March 2020 and October 2020.
All transactions, including the sale or Nexo tokens, were done in good faith, supported with documentation, and acknowledged by the claimants as final upon execution, according Nexo.
Nexo went on to state:
“The claimants made substantial profits trading their Nexo tokens and withdrew all of their assets from Nexo.”
A Dent On Nexo’s Image?
Nexo, a London-based company that claims all assets on its platforms are more “fully-backed”, has been a leader in transparency.
Read more: Crypto Lender Nexo Offers to Buy Celsius’ Resting Assets
The exchange claims to have five million users and has processed transactions worth more than $130bn over the past five year.
The High Court lawsuit claims that Nexo violated their contract by placing “bespoke withdrawal limits” on the accounts of cryptocurrency investors. The lawsuit also claims that investors were forced to sell their Nexo Tokens below the market value.
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