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19 April 2021

XRP User Files Lawsuit Against Nexo for $5M in Liquidations | Crypto Briefing

XRP User Files Lawsuit Against Nexo for $5M in Liquidations | Crypto Briefing


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One day after the SEC filed legal action against Ripple in December 2020, Nexo suspended XRP.

23, 2020, a day after the Securities Exchange Commission (SEC) took legal action against Ripple Labs, Nexo suspended the ability to pay back loans in XRP or use the asset as collateral.

Thus, the SEC’s legal action crashed the price of XRP from about $0.45 to ~$0.17 in a few days.The declining XRP prices amid regulatory action against Ripple meant certain customers would need to add more funds (besides XRP) to maintain their LTV ratios.Eventually, Nexo had to liquidate some of their customers’ funds, who could not add sufficient collateral to support their XRP-backed loans. .

The legal document filed by Jeong’s lawyers claims Nexo sold off his collateral funds consisting of 598,384.6188 XRP. The plaintiff complained Nexo did not provide notice on email or phone about the incident.

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