Crypto lending platform Nexo has been sued by a group of investors for blocking $126 million withdrawals.
The effects of the crypto bear market are putting investors’ assets in jeopardy. The downward trend in the general trend and the recent events have increased the negative atmosphere. The bankruptcy of the FTX exchange and the accompanying bankruptcies were among the biggest reasons for the process. After all the processes, liquidity shortages grew in crypto companies. Companies are looking for new ways to give investor assets and return transactions. One of these platforms, Nexo, was sued for blocking a $126 million withdrawal.
Investors Sued Nexo
The plaintiffs stated that the Nexo platform froze their accounts after they tried to remove their assets from the platform. In light of these allegations, the crypto platform was sued.
According to the news by CityAM, the crypto lending platform has been sued in the London High Court. The crypto platform was accused of not allowing withdrawals of cryptocurrencies worth £107 million (about $126 million).
Jason Morton, Owen Morton and Shane Morton shared what happened after they tried to remove their assets from the platform. Three victims stated that they blocked them from the platform after the transaction.
The Mortons allegedly faced the threat that they would be prevented from withdrawing their crypto holdings. This was because the tokens to be sold were likely to create a crisis in Nexo. Platform requested these tokens at a discount from three investors.
On the other hand, Nexo said the following on the subject;
“All transactions, including the sale of Nexo tokens, were completed in good faith. It was also documented and accepted as final by the plaintiffs at the time of enforcement.”
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