Just-In: Crypto Giant Nexo In Trouble Over An Old Lawsuit

According to a report, a group of investors is suing crypto lender Nexo in the London High Court on the grounds that the crypto firm prevented them from withdrawing over $126 million in cryptocurrency. The three investors, cousin Shane Morton, and brothers Jason and Owen Morton, alleged that Nexo froze their accounts when they attempted to transfer their assets off the platform.

The Mortons assert that after being threatened with being prevented from withdrawing their cryptocurrency, they were forced into returning millions of dollars worth of Nexo’s native token to the company at a reduced price.

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Together, the three of them had tens of millions of dollars worth of cryptocurrencies, such as Bitcoin, Pax Gold, and Stellar, as well as a mammoth number of Nexo’s native cryptocurrency, Nexo Tokens, stored on the exchange.

Crypto Lender Nexo Responds To Allegations

As per Nexo’s official blog post, Nexo acknowledged the service of a claim made by the Mortons confirming that it will be defending the claim in full, through its solicitors — Eversheds Sutherland.

In response, Nexo called the lawsuit “opportunistic” because it was filed in October of this year despite though the incidents occurring between March 2020 and October 2020.

All transactions, including the sale of their Nexo tokens, were carried out in good faith, supported by documentation, and acknowledged as final by the claimants upon execution, according to Nexo.

Nexo further went on to state:

“Having made substantial profits from trading their Nexo tokens, the claimants withdrew all their assets from the Nexo platform.”

A Dent On Nexo’s Image?

The London-based Nexo, which claims all assets held on its platforms are more than “fully-backed”, has previously put itself forwards as a leader in terms of transparency.

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The exchange claims it has five million users and says it has processed more than $130bn worth of transactions over the past five years.

However, the High Court lawsuit asserts that by placing “bespoke” withdrawal limits on the accounts of the cryptocurrency investors, Nexo violated the terms of their contract with them. Additionally, the lawsuit asserts that the investors were coerced into selling their Nexo Tokens below market value.