John Cress, a user residing in California (USA), has filed a lawsuit against crypto lending platform Nexo for damages caused by a "fraudulent inducement" to obtain loans.
According to the lawsuit, Cress had an interest-bearing account on the platform. According to it, Nexo "falsely" forced him to borrow additional digital assets that he deposited into complex financial products to earn additional income.
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He claims he ultimately "suffered millions of dollars in losses because of those misrepresentations when he was liquidated of substantially all his digital assets."
Cress has said he bought Bitcoin in 2014 and Ethereum in 2017 and invested assets in profitable Nexo products in 2021.
He has also pointed to regulatory claims against the company regarding the Earn Interest Product program. The SEC and several state regulators found the Earn Interest Product to be an unregistered securities offering.