Investors Sue Nexo For Blocking $126 Million in Funds in March 2021

Nexo is being sued in London by a family of fintech entrepreneurs who allege that it froze their ability to withdraw up to £107 million ($126 million) of their assets and then intimidated them into selling it all to the crypto lender at a 60% discount, Decrypt.com reported. According to a report by City AM, brothers Jason and Owen and cousin Shane Morton together held millions of Nexo’s NEXO token, along with tens of millions in Bitcoin and other cryptocurrencies. They claim to have first aired concerns about Nexo’s compliance and transparency in December 2020. After failing to hear back from the crypto lender, they began withdrawing some of their $126 million stash the following March, selling their NEXO in tranches so as not to impact the price. However, on March 22, 2021, Nexo imposed a $150,000 cap on daily withdrawals. The following day, the Mortons claim their “withdrawal” buttons had been grayed out. They could not convert their NEXO to other cryptocurrencies, either, since the “convert” button had been similarly frozen. Read more.