Nexo Being Sued by Investor Over $126M Withdrawal

Nexo Being Sued by Investor Over $126M Withdrawal
  • Ten days before the complaint was made public, Nexo issued a statement.
  • The investor voiced their concerns for the first time in December 2020.

In London, a family of fintech entrepreneurs is suing Nexo, claiming that the cryptocurrency lender restricted their access to up to £107 million ($126 million) in assets and then threatened them into selling it all to Nexo at a 60% discount.

City AM said that the brothers Jason and Owen and their cousin Shane Morton, possessed millions of Nexo’s NEXO tokens along with tens of millions of dollars in cryptocurrencies.

They state that they voiced their concerns regarding Nexo’s transparency and compliance for the first time in December 2020. After not hearing back from Nexo, they started selling off their NEXO token in tranches and withdrew part of their $126 million in March.

Supporting Price of Nexo Tokens

However, Nexo restricted daily withdrawals to $150,000 as of March 22, 2021. The Mortons say they discovered their “withdrawal” options were disabled the day after. In a similar vein, the “convert” option was also inaccessible. Thus they were unable to exchange their NEXO for other cryptocurrencies like Bitcoin or altcoins.

The Nexo accounts manager who helped them claims he explained the moves were made to “support the price of Nexo Tokens.” After that, he supposedly offered them a bargain they couldn’t refuse. That they could return their NEXO to the exchange for a 60% discount.

Nexo is being sued for allegedly breaking the terms of its contract. By setting “bespoke” withdrawal limitations and for using “intimidation” in subsequent negotiations.

Ten days before the complaint was made public. Nexo issued a statement in which it called the lawsuit “opportunistic.” And said that “all transactions, including the sale of their Nexo tokens, were completed in good faith, were documented and were accepted as final by the claimants at execution.”

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