A family of fintech entrepreneurs is suing Nexo in London, alleging that the cryptocurrency lender limited their access to up to £107 million ($126 million) in assets and then threatened them into selling it all to Nexo at a 60% discount.
According to City AM, the brothers Jason and Owen, as well as their cousin Shane Morton, possessed millions of Nexo’s NEXO tokens and tens of millions of dollars in cryptocurrency.
They claim that they first expressed their concerns about Nexo’s transparency and compliance in December 2020.
After not receiving a response from Nexo, they began selling their NEXO token in tranches and withdrew a portion of their $126 million in March.
Nexo, on the other hand, has limited daily withdrawals to $150,000 as of March 22, 2021. The Mortons claim that the next day, their “withdrawal” options were disabled.
Similarly, the “convert” option was also unavailable. As a result, they could not exchange their NEXO for other cryptocurrencies such as Bitcoin or altcoins.
According to the Nexo account manager who assisted them, the moves were made to “support the price of Nexo Tokens.”
Following that, he allegedly offered them a deal they couldn’t refuse. That they could return their NEXO for a 60% discount at the exchange.
Nexo is being sued for allegedly breaching its contract terms. By imposing “tailored” withdrawal restrictions and employing “intimidation” in subsequent negotiations.
The complaint was made public ten days before. Nexo issued a statement calling the lawsuit “opportunistic.”
Furthermore, “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,” the statement said.