DeFi platform Nexo faces fraud allegations

According to journalists from the British publication City AM, a group of investors sent a lawsuit to the High Court of London in order to convict the Nexo platform from the decentralized finance sector of fraud. The lawsuit was filed by three major professional investors, brothers Jason and Owen Morton and their cousin Shane Morton.

According to the plaintiff, the service approved a deposit to the account without any problems, but when clients wanted to withdraw cryptocurrency assets in excess of $126,000,000 in the equivalent of British pounds, Nexo did not let them do what they wanted. After applying for a withdrawal of funds, the decentralized exchange froze the accounts of the Mort brothers and now they want to get their money back by appealing to the British High Court.

In addition, the investor brothers claimed that they received serious pressure from Nexo. According to them, representatives of the platform wanted to force the Mortons to sell the Nexo token at a discounted price of millions of dollars. Otherwise, the brothers will not be able to withdraw their funds at all, and the accounts will be permanently blocked by the Nexo service.

Nexo has commented on this incident. The administration of the site called the filing of a lawsuit a fake, as it was filed in the fall of 2022 when it comes to the events that took place in 2020 and 2021. Lawyers who will defend the interests of the Morton brothers have not yet responded to comments from CoinDesk journalists who are investigating the case.

In addition, Nexo claims that all transactions mentioned by the Morton brothers were performed voluntarily, including the very tokens that investors owned. Transactions were also documented and deemed final by the Mortons in the execution of transfers. The Nexo press service specifically emphasized that clients have made great profits from trading digital currencies, after which the plaintiffs were able to successfully withdraw their assets from the decentralized platform.