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19 April 2021

Nexo Sued for 'Unlawful' Liquidation of Clients' Collateral XRP Amid SEC's Ripple Lawsuit – Regulation Bitcoin News

Nexo Sued for 'Unlawful' Liquidation of Clients' Collateral XRP Amid SEC's Ripple Lawsuit – Regulation Bitcoin News


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An XRP investor, Junhan Jeong, has filed a class-action lawsuit against Nexo Financial LLC, Nexo Financial Services Ltd., Nexo Services Ou, Nexo AG, and Nexo Capital Inc.

In the lawsuit filed on April 1, he alleges that Nexo unlawfully suspended the use of XRP as collateral without giving notice to clients and liquidating the tokens.

23, the day after the SEC filed its lawsuit against Ripple, Nexo suspended customers’ use of XRP to stake as collateral or pay down on loans without providing notice of suspension, the lawsuit describes.

Furthermore, the lawsuit alleges that “Nexo also engaged in ‘deceptive’ and ‘misleading’ advertising … by using language on its website, in its whitepaper, and in online interviews,” misguiding customers into “concluding that in using the Nexo Crypto Credit, they would be pledging their cryptoassets as security against the debt reflected in the Crypto Credit — not selling their cryptoassets to Nexo by afford Nexo ‘ownership’ over the assets.” The full court filing can be found here.

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