Crypto lender Nexo is being sued by a group of investors who claim the company blocked them from making withdrawals.
In the London High Court, the claimants, brothers Jason and Owen Morton and their cousin Shane Morton said Nexo had held back over £107m ($126m) worth of cryptocurrencies.
The trio alleged that in 2020-21 the lender froze their accounts after they attempted to move their assets from the platform.
It was said they were then pressured into selling millions worth of Nexo’s native token (NEXO) back to the firm at a discounted rate, and if they did not comply, all three would be blocked from withdrawing their crypto funds.
As the claim was made some years back, Nexo described it as “opportunist” and believed it to have been closed.
“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.
“Having made substantial profits from trading their Nexo tokens, the claimants withdrew all their assets from the Nexo platform”, said Nexo.
UPDATE. In response to this article, Nexo made the following statement:
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.
Nexo considers that the claim has been brought opportunistically, some time after the events in question took place during 2020 through to March 2021. Nexo had considered the matter closed, and is disappointed to see it re-emerge.
The claimants are high net worth, sophisticated investors with backgrounds in fintech. The claimants used the Nexo platform to make several sizeable and lucrative transactions, notably involving their NEXO tokens. These transactions included fixed term arrangements, and the subsequent sale of their NEXO tokens. Inevitably, spot trades of large blocks of crypto-assets can involve higher spreads. 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. Having made substantial profits from trading their Nexo tokens, the claimants withdrew all their assets from the Nexo platform and they are not disputing this fact:
Whilst we appreciate that lawsuits will always be brought against successful companies, we would like to think that our impeccable track record of 5+ million satisfied users speaks loudest about Nexo’s business practices and adherence to the highest possible standards.
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