European cryptocurrency lending firm Nexo is facing a $126 million lawsuit from three crypto investors, who say the firm blocked them from withdrawing funds and later intimidated them into selling assets at a discount.
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According to a report by City AM, the lawsuit (case number CL-2022-000516) has been filed at a High Court by brothers Jason and Owen Morton alongside their cousin Shane Morton. The plaintiffs claim that the London-based firm blocked their accounts and then intimidated them to sell all the assets into the nexo (NEXO) tokens on the threat they would be blocked from withdrawing their assets from the platform's exchange.
The Mortons first started selling their crypto in December 2020, when they got no adequate response from Nexo about their concerns on the firm's regulatory status with the UK’s Financial Conduct Authority (FCA). However, in March 2021, Nexo imposed daily limits with no explanation, prohibiting the plaintiffs from withdrawing more than $150,000 a day.
Nexo said in a blog post that all transactions, including the sale of NEXO tokens, were completed "in good faith, were documented and were accepted as final by the claimants at execution." The company also described the case as "opportunistic" as the events took place during 2020 through to March 2021.
Update. Includes response from Nexo on the matter.
Update 2. Expands the headline with the dates, expands Nexo's statement that the case took place during 2020-2021.
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