Nexo, the cryptocurrency lender, has filed a class action lawsuit over XRP

Nexo, the cryptocurrency lender, has filed a class action lawsuit over XRP

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

Nexo suspended use of the XRP token on December 23 without notice. The plaintiff also added that the company sold users’ coins and embezzled the money received.

Within hours of suspension, and exercising the alleged contractual right to “own” the guarantees of their clients, […] Nexo launched a massive sale of warranties at XRP, ”the document states.

According to the plaintiff, the provider’s actions resulted in more than $ 5 million liquidation of users’ assets, and Zong demanded damages.

In early January, he posted on his blog a call to not use Nexo.

According to the legal terms on the NEXO homepage, they must notify the customer of the suspension [поддержки] The digital assets, but they didn’t and just removed the XRP button in the UI. “

Nexo previously filed a defamation lawsuit against client Lance Johansen over negative comments he had posted on the Trustpilot platform in early 2021. The company was dissatisfied with the defendant’s statements that it “intentionally caused thousands of people to lose millions of XRP.”

In December 2020, the US Securities and Exchange Commission (SEC) accused Ripple of selling unregistered XRP securities for $ 1.3 billion. – Founder Chris Larsen.

Against this background, some platforms and large companies refused to support the token. Among them are Galaxy Digital, Bitstamp, B2C2, Coinbase, and OKCoin.

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Asset management firm Grayscale Investments announced the liquidation of its XRP-based investment fund, 21Shares has removed the Ripple token from its exchange-traded products.

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

The SEC later said that exchanges and other platforms are not violating the regulatory authority’s rules by selling tokens from Ripple.

Remember, in March, Rosen Law Firm’s attorneys filed a class action lawsuit against MoneyGram over statements regarding a partnership with a California-based company and XRP.

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