Class-action filed against crypto lender Nexo over XRP

A California resident Junhan Jeong [Junhan Jeong] filed a class-action lawsuit against the crypto loan provider Nexo. He accused the company of violating its user agreement for its response to the SEC’s allegations against Ripple.

According to the filing, on December 23 Nexo suspended the XRP token without notice. The plaintiff also added that the company sold users’ coins and misappropriated the proceeds.

Within hours of the suspension, exercising what they describe as customers’ collateral ownership rights, Nexo began mass selling XRP collateral

According to the plaintiff, the provider’s actions led to the liquidation of user assets totaling more than $5 million. Jeong demanded damages.

In early January, he posted on his blog an appeal not to use Nexo.

Under the terms on NEXO’s homepage they should have notified customers about the suspension of support for the digital assets, but they did not and simply removed the XRP button from the user interface, Jeong noted.

Earlier, Nexo filed a defamation suit against Lance Johansen’s client over negative reviews published by him on Trustpilot in early 2021. The company criticized the defendant’s statements that it was deliberately causing thousands of people to lose millions of XRP.

In December 2020, the US Securities and Exchange Commission (SEC) accused Ripple of selling unregistered securities in the form of XRP worth $1.3 billion. Later the regulator clarified the responsibility of the California-based firm’s CEO Brad Garlinghouse and co-founder Chris Larsen.

In this backdrop, several major platforms and firms dropped support for the token. Among them are Galaxy Digital, Bitstamp, B2C2, Coinbase and OKCoin.

Grayscale Investments announced the liquidation of an XRP-based investment trust, and 21Shares removed the Ripple token from its traded exchange-traded products.

In February 2021, MoneyGram’s money transfer service also declined to use the XRP-based product.

Later, the SEC stated that exchanges and other platforms did not violate the regulator’s guidelines by selling Ripple’s tokens.

Earlier in March, Rosen Law Firm lawyers filed a class-action lawsuit against MoneyGram over statements regarding a partnership with the California-based company and XRP.

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