Nexo sued for causing over $5 million in damages by ‘unlawful’ suspension of XRP payments

By Alisha Roy. April 6, 2021. (AMBCrypto).

UK-based crypto loan provider, Nexo has been sued for allegedly causing over $5 million worth of losses by suspending XRP payments in December last year. This was after SEC accused Ripple of an alleged illegal securities offering. The class-action lawsuit has been filed by Plaintiff Junhan Jeong, a California resident, on behalf of other XRP users who suffered damages as a result of Nexus’ decision. According to the filing: 

Plaintiff seeks redress for the nationwide harm resulting from Nexo’s intentional and unjustified suspension on December 23, 2020, of a critical repayment option on its platform for using crypto assets to borrow cash and from the resulting liquidation of the collateral of hundreds of Nexo customers, causing well over $5 million in damages.

After SEC sued Ripple in December last year, several crypto service providers decided to suspend XRP from their platforms including exchanges. 

However, the latest filing accused Nexo of prohibiting customers from maintaining “their LTV ratios and then punished them for not maintaining their LTV ratios.” 

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