$58 350 000 USD

MARCH 2021




"Buy & Earn Interest on BTC, USDT and Other Digital Assets Grow your crypto wealth and keep it secure with Nexo."


"The Mortons claimed they initially informed Nexo about their concerns in December 2020 but received an unsatisfactory response.


Subsequently, they decided to withdraw their combined crypto assets worth $126 million from the exchange. In March 2021, they started liquidating their NEXO tokens in small portions to avoid a heavy impact on the market. They also had other crypto assets, including Bitcoin (BTC), Pax Gold (PAXG), and Stellar (XLM)."


"This news article covers info that happened in 2021 and has been fully public for several months. Nexo commented on it many months ago."


"The three crypto investors have filed a High Court lawsuit against London headquartered Nexo over claims it stopped them from withdrawing more than $126m (£107m) worth of cryptocurrencies and then intimidated them into selling their assets at a 60 per cent discount.


The tech entrepreneurs – brothers Jason and Owen Morton and their cousin Shane Morton – claim Nexo froze their accounts after they sought to pull their assets off the Cayman Islands incorporated exchange, due to becoming concerned about its lack of transparency.


The investors claim they were then intimidated into selling millions worth of Nexo Tokens back to the company at a discount price, on the threat they would be blocked from withdrawing their crypto from Nexo’s exchange, according to High Court documents seen by City A.M.


Together, the three men had millions of Nexo’s own cryptocurrency, Nexo Tokens, stored the exchange alongside tens of millions of dollars’ worth of other cryptocurrencies, including Bitcoin, Pax Gold, and Stellar."


"However, on 22 March 2021, Nexo – without notice or explanation – imposed bespoke daily withdrawal limits on the entrepreneurs’ accounts, which blocked them from pulling more than $150,000 a day off the platform, the High Court claim says.


The following day, on 23 March 2021, Nexo then entirely blocked the entrepreneurs from withdrawing their assets, by greying out their withdraw buttons, therefore disabling them from pulling any cryptocurrencies from the platform.


That same day, Nexo also blocked two of the businessmen from converting their Nexo tokens into other cryptocurrencies, by greying out the convert buttons that had previously been available to both Shane and Owen Morton."


"During their conversation, the account manager explained Nexo had frozen their accounts to “support the price of Nexo Tokens,” the High Court filings show.


He in turn offered the investors a deal, through which they could either sell their Nexo Tokens at a 60 per cent discount on their market price in return for a complete removal of any subsequent withdrawal limits.


The Mortons subsequently accepted Nexo’s offer through which they agreed to sell their Nexo Tokens at a 60 per cent discount on their market price, in return for the removal of withdrawal limits. The deal saw Nexo pay the investors $38,948,743 worth of the dollar-pegged stablecoin Tether.


Altogether, the Mortons held 38,793,323.7 Nexo Tokens when they sought to withdraw their assets. In March, those assets would have been worth around $85.4m, according to data from CoinMarketCap.


The Mortons also held 281.05 Bitcoin, worth around $12.5m, on Nexo’s platform.


The High Court lawsuit claims Nexo breached its contract with the crypto investors by imposing “bespoke” withdrawal limits on their accounts. The lawsuit also claims the investors were intimidated into selling their Nexo Tokens at a below market price."


"In a response to the lawsuit posted on its website, Nexo said the claimants’ transactions included fixed-term arrangements and the subsequent sale of their Nexo tokens, and that spot trades of large blocks of crypto assets can involve higher spreads.


“However, 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,” Nexo said in the statement.


The crypto lender added in the statement that it considers that the claim has been brought “opportunistically” because the events outlined in the lawsuit were completed in March 2021 and Nexo considered the matter closed."


"Inevitably, spot trades of large blocks of crypto-assets can involve higher spreads. However, 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. Having made substantial profits from trading their Nexo tokens, the claimants withdrew all their assets from the Nexo platform and they are not disputing this fact."

Nexo, a London-based crypto exchange, is alleging to have prevented three tech entrepreneurs—brothers Jason and Owen Morton and their cousin Shane Morton from withdrawing over $126 million worth of cryptocurrencies and coerced them into selling their assets at a 60% discount. The investors claim that Nexo froze their accounts after expressing concerns about the exchange's transparency and then pressured them into selling Nexo Tokens back to the company. The lawsuit alleges breach of contract, claiming that Nexo imposed "bespoke" withdrawal limits and intimidated the investors into selling tokens below market value. A High Court lawsuit against Nexo was filed. Nexo responded, stating that all transactions were completed in good faith and considered the claim opportunistic as the events occurred in March 2021.

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