A group of users who suffered losses due to the sudden deregistration of XRP on various exchanges filed a lawsuit against the Nexo platform.
This move came after Ripple price surged nearly 65% in the past 24 hours.
The Securities and Exchange Commission’s (SEC) securities lawsuit against Ripple caused many platforms to cease XRP-based services. That said, Nexo seems to be one of the first companies to face a class action lawsuit about its suspension of XRP-related transactions.
Nexo’s deliberate and unjustified suspension of a critical payment option on its platform on December 23, 2020 resulted in the liquidation of the collateral of hundreds of Nexo customers, causing losses of over $ 5 million. These hundreds of customers were “locked in” maintaining their credit-to-value (LTV) rates because they couldn’t sell their tokens, which triggered a series of liquidations.
However, in a post published on April 5, Nexo responded to the lawsuit and stated that it is among more than 30 leading platforms to stop XRP-related services. Nexo made a statement regarding its alleged “deliberate and unjustified suspension”. The firm, “Nexo’s actions on its legal counsel are in accordance with laws, regulations and the company’s own terms and conditions, and aimed to protect the business and its customers.” used the expressions.
The post also mentioned that customers can use other Nexo-certified cryptocurrency assets instead of XRP to repay their loans.