Find Here Why This Crypto Platform is Being Sued?

Reportedly, Nexo is being sued in the London High Court by a group of investors. These investors alleged that Nexo blocked them from withdrawing over 107 Million pounds (~$126 Million) of crypto in 2020-21. 

Nexo said that the claim was “opportunistic,” and also added in its blog post that was published on its official site on November 11, 2022, titled “On the claim made by the Mortons in the High Court in England.”

In its official blog, Nexo added that “In October 2022, Nexo acknowledged service of a claim made by the Mortons confirming that it will be defending the claim in full through its solicitors, Eversheds Sutherland.”

Although Nexo mentioned that it appreciates that lawsuits will always be brought against successful companies.

The platform considers that the claim has been brought opportunistically, some time after the events in question took place during 2020 through to March 2021. The firm then considered the matter closed, and was disappointed to see it re-emerge.

The three investors were brothers Jason and Owen Morton and their cousin Shane Morton who allege that Nexo froze their accounts after they sought to remove their assets from the platform.

While Nexo added about the investors that the claimants are high net worth, sophisticated investors with backgrounds in fintech, and used the Nexo platform to make several sizable and lucrative transactions, notably involving their NEXO tokens.

However, 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. Nexo also pointed out that after making substantial profits from trading their Nexo tokens, the claimants withdrew all their assets from the Nexo platform.

On the other hand, Mortons claimed that they were then pressured into selling millions’ worth of Nexo’s native token back to the firm at a discount price.

Nexo Updates After FTX Collapse

And on November 9, 2022, Nexo, shared the information that it has $0 net exposure to FTX or Alameda. “As a conservative institution with stringent risk controls Nexo has safeguarded all funds by withdrawing its entire balances from the exchange over the past few days.”

The crypto platform also has a small loan to Alameda (<0.5% оf our assets), fully collateralized by digital assets that were sold in full by our team two days ago, resulting in 100% principal recovery and $0 losses for the company.”

Nexo clarifies that it is the only lender that never restricted withdrawals, and also didn’t need financial help. It had $0 exposure to:

– UST/Luna

– Three Arrows Capital 

– Celsius, Babel, Hodlnaut, etc.

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