Future Of British Business

Crypto Lender Sued for Blocking 2021 Withdrawals by Wealthy Investors

  • Nexo alleged to have frozen investor funds and forced sale
  • UK claims are opportunistic from sophisticated investors: Nexo
Cryptocurrency mining rigs.Photographer: Akos Stiller/Bloomberg
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Cryptoasset lender, Nexo Capital Inc., was sued in London by investors who allege they were blocked from withdrawing parts of their $126 million in assets from the exchange in March 2021, when one Bitcoin was worth more than $54,000.

Nexo froze the accounts of two brothers and their cousin in late March 2021 and pressurized them into selling its own token back at a heavily discounted rate, lawyers for the investors said in the lawsuit. Owen and Jason Morton, and their cousin Shane Morton said they were forced to sell the tokens at about a 60% discount of the market price, they alleged.