cryptocurrencyNewsRippleXRPXRP NewsXRPUSDXRPUSDT

Investor Lodges Class-Action Complaint Against Nexo Over Suspension Of XRP That Caused $5M In Losses

The world’s biggest cryptocurrency lender Nexo is being sued by a California resident for suspending XRP payments back in December. Nexo was among the first firms to cut ties with XRP after the SEC launched its lawsuit against Ripple. The plaintiff, Junhan Jeong, is now pursuing legal action against Nexo for this “intentional and unjustified” suspension that led to $5 million in damages.

Nexo Acted In Bad Faith

On December 22 last year, the SEC filed a lawsuit against payments firm Ripple for conducting illegal sales of the XRP cryptocurrency. The price of the cryptocurrency dropped from $0.45 to ~$0.21 in the span of hours. Nexo rushed to suspend XRP payments and then proceeded to sell huge amounts of its customers’ funds  — subsequently keeping the proceeds to itself.

According to documents submitted on April 1 in a California court, Jeong alleges that Nexo did not notify its customers of the suspension of XRP payments on phone or email. Jeong, who had taken a fiat loan from Nexo using XRP as the collateral alongside hundreds of other customers were obstructed from sustaining their loan-to-value (LTV) ratio which spurred a cascade of liquidations. To put it simply, this suspension implied that customers could not repay their loans using XRP or even use the asset as collateral.

The lawsuit claims that Jeong lost his collateral consisting of approximately 598,384.6188 XRP valued at $269,300. It further describes the liquidation of customers’ collateral as “unlawful”, countering Nexo’s statement back in December that says it was entitled to act as it …
Story continues on Zycrypto

Related posts
AA NewsCrypto NewsRippleRipple (XRP) PriceSECSocialXRPBTCXRPUSD

XRP Price Soars to $1 In Anticipation of Today’s Ripple-SEC Hearing

Despite the ongoing legal battle with the Securities and Exchange Commission and today’s hearing, Ripple’s native digital asset has exploded in value in the past few days. XRP is more than 70% up in a week, and its price tapped…
CoinGapeNews

ETH Retail Demand Overpowers Declining Implied Volatility

Ether (ETH) broke past the month-long consolidation phase to register a new ATH of $2,152 a couple of days ago. The new ATH comes in the wake of declining Bitcoin dominance which is currently at 55.53% and ETH/BTC pair bottoming…
AltcoinsAnalysisHideCryptopanicNewsNews 1SocialTrading View

Chainlink, IOTA, Dash Price Analysis: 06 April

At the time of writing, Bitcoin’s latest attempt to breach the vaunted $60,000-mark had come to a standtill, with the world’s largest cryptocurrency’s price still holding steady around $59k. In the laThe post Chainlink, IOTA, Dash Story continues on AMB…