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Investors drag Nexo to court over account issues

Nexo

TL;DR Breakdown

  • Nexo and investors lock horns over account issues
  • The company denies wrongdoing
  • The investors said they felt intimidated

Nexo has been dragged to court by a family of investors over the platform’s failure to sanction their withdrawals. According to reports, the group of Fintech entrepreneurs claimed that the firm blocked their efforts to withdraw about $126 million in assets from their funds on the platform. After the issue was related to the company, the investors still mentioned that the firm bullied them into parting with the same sim in digital assets for about 60% less than the normal price.

The investors said they felt intimidated

The report that was published by City AM claimed that the family of investors consisted of two brothers and their cousin. It claimed that asides from the native NEXO tokens, they held a massive amount of Bitcoin and other digital assets on the platform. The group claimed that they first brought this kind of issue to light in 2020 when they tried to make a big withdrawal.

They claimed that after the company refused to listen to their grievances, they started selling stashes of their $126 million worth of assets in order not to overly affect the price. However, their plans suffered a little setback after Nexo placed a $150,000 limit on withdrawals daily. The next day, the family claimed that both the withdrawals and the convert buttons on their accounts failed to work.

Nexo deny any wrongdoing

After the incident, the family reached out to their account manager at the company who similarly told them that the measure was taken to help stabilize the price of the tokens. However, they were forced to make the 60% deal to be able to cash out their cache of assets from the platform. According to the details of the suit, the family claimed that the company used intimidating techniques to coerce them into accepting to withdraw at that rate.

In its statement, Nexo claimed that the family was looking for an opportunity and that the company has not dealt in bad faith. The company mentioned that all its dealings were documented and accepted by the group before it was finalized. This is not the first time that the company will be embroiled in a controversial saga. The company was recently slammed with lawsuits from eight states in the US. They alleged that all the documents that the company showed false documents saying it already passed compliance procedures from regulators across the country.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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