December 5, 2022

A group of investors sued crypto lender Nexo for $126 million

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A group of investors sued crypto lender Nexo for $126 million

U.S. crypto lender Nexo has been sued by a group of investors alleging that the company prevented the withdrawal of more than 107 million pounds ($126 million) of cryptocurrencies.

Plaintiffs brothers Jason, Shane and Owen Morton allege that Nexo froze their accounts after the brothers attempted to withdraw their assets from the platform.

The Mortons said they were pressureddemanding that they sell millions of dollars worth of their own token to Nexo at a reduced price. At the same time, the brothers were allegedly threatened that they would be banned from withdrawing their digital assets. The company said that the brothers filed a lawsuit for the purpose of profit. The evidence is the fact that the lawsuit was filed in October 2022, although the events described took place from the beginning of 2020 to March 2021:

“All transactions with crypto assets, including the saleof Nexo tokens, were held on a voluntary basis and documented, recognized as final upon execution. Applicants have made significant profits by trading Nexo tokens and have withdrawn all of their assets from the platform.”

Recall that in September, regulators in eight US states through the court demanded that Nexo stop promoting interest-bearing cryptocurrency products that fall under the Securities Act.