A California resident, John Kress, filed a lawsuit against the crypto-lending platform Nexo for damages arising from “fraudulent inducement” to take loans. The Block reports this.<\/p>\n
According to the complaint, Kress held an interest-bearing account on the platform. He alleges that Nexo used “misleading statements” to induce him to borrow additional digital assets, which he had deposited into yield-generating products for extra earnings.<\/p>\n
The plaintiff said that ultimately “as a result of liquidations of positions, he incurred losses of millions of dollars due to the misleading conduct”.<\/p>\n
Kress described himself as a longtime crypto investor. He bought Bitcoin in 2014 and Ethereum in 2017. In 2021, the plaintiff invested assets in Nexo’s yield-bearing products.<\/p>\n
He also cited regulatory actions against the company concerning the Earn Interest Product. SEC<\/span> and state regulators<\/a> in several states deemed the yield-bearing product an unregistered securities offering.<\/p>\n In January 2023, the company reached an agreement with the authorities, agreeing to pay fines totaling $45 million<\/a>.<\/p>\n