Nexo is being sued in London by a family of fintech entrepreneurs who claim it froze their ability to withdraw up to £107m ($126m) of their assets and then scared them out of selling it all to a cryptocurrency lender at a 60% discount. %.
According to a report before am cityBrothers Jason and Owen and cousin Shane Morton collectively own millions of Nexo tokens, along with tens of millions of bitcoins and other cryptocurrencies.
They claim to have first raised their concerns about Nexo’s compliance and transparency in December 2020. After failing to receive a response from the cryptocurrency lender, they began withdrawing some of their $126 million in shares the following March, and sold NEXO in lots to not affect the price.
However, on March 22, 2021, Nexo introduced a $150,000 cap for daily withdrawals. The next day, the Mortons claimed their “pull” buttons had been greyed out. They were also unable to convert NEXO to other cryptocurrencies, as the “convert” button was similarly frozen.
They claim that when they reached out to their Nexo account manager, he told them that measures had been taken to “support the price of Nexo tokens.” Then he allegedly offered them a deal they couldn’t refuse: They could sell NEXO back to the exchange at a 60% discount.
The lawsuit alleges that Nexo breached the contract by imposing “ad hoc” withdrawal limits and that the lender’s subsequent negotiation tactics amounted to “intimidation.”
Nexo, for its part, responded to the lawsuit before the lawsuit became public and issued a filing statement Ten days ago he called it “opportunistic” and claimed that “all transactions, including the sale of their Nexo tokens, were made in good faith, and were documented and accepted as final by the plaintiffs upon execution.”
Nexo in hot water
Nexo is no stranger to controversy. After the collapse of Terra caused a wave of liquidity woes among industry cryptocurrency lenders, acquiring Celsius, Voyager, Vauld, Hodlnaut and many more, a group of voices said Nexo will be next.
In September, the lender was hit with enforcement action from eight states, which alleged that the company “misrepresentThe extent to which they comply with the state securities regulations.
California And join him VermontAnd the OklahomaAnd the South CarolinaAnd the KentuckyMaryland has filed cease and desist orders against the company.
Washington State published one Notice of indictment It announced that it had also issued a cease and desist order, while in New York more dangerous She sued Nexo for “falsely stating that it complies with applicable regulations and licensing requirements.”
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