The latter part of last year, which saw the plummeting of fortunes of many digital assets in the cryptocurrency space, coincided with a terrible time for Ripple and XRP. The U.S Securities and Exchange (SEC) had taken Ripple- the parent company of XRP, to court over the trade of the cryptocurrency, terming it as unregistered securities.
The resultant effect of the regulatory body’s actions on Ripple and XRP caused XRP to fall massively in price value, as many exchanges started to delist the cryptocurrency off their platform. However, the crypto lending platform- Nexo, which had joined the growing list of firms to delist the altcoin off its platform, is now set to face the law over the action.
Jeong believes that the actions of Nexo remain condemned
The actions of Nexo, which has been condemned by many of its customers, are now set to see the Crypto lending platform facing the law over several charges. Junhan Jeong, one of Nexo’s users, has filed a lawsuit against the crypto lenders, sighting that they removed XRP from their services without informing their customers.
Jeong believes that the actions of the crypto lending platform, known for allowing its users to borrow crypto asset-backed loans in the form of Fiat currencies, are condemnable due to their impact on customer’s trading activities. Jeong believes the impromptu decision to suspend XRP from its platform on 23rd December 2020 left many debtors of the platform in chaos, as they were forced to liquidate their loans untimely.
Jeong, acting as the leading plaintiff in the lawsuit, believes that Nexo had removed the XRP not because of the unfair SEC ruling but because of the fall in price value of the cryptocurrency. Jeoung and co. believe that the actions of Nexo had cost users losses of at least $5 million in liquidated loans. In Jeong and Co’s filing, they also believe that Nexo had quickly sold off the high-valued XRP under its custody, selfishly pocketing the proceeds.
Nevo believe they did nothing wrong
However, Jeong is now requesting the court to instruct the crypto company to pay them their losses, and the court should place a trading restraining order on the crypto lenders. Nexo has now responded to Jeong and co’s allegations, declaring that their suspension of XRP was not intended to cause loss for any of their users.
Nexo believed that their actions were in line with other rival companies, who thought it was the wisest business decision to take at the time. Nexo, in their response, confirmed that it did not totally halt the services of XRP on its platforms, as users could still perform top-up and withdrawal of the crypto assets on its platform.
However, there is no confirmation that Nexo will be countersuing, as it also confirmed that it had been an object of harassment by many since the suspension of XRP on its platform. However, the case will now be heard by a judge, who will be expected to serve justice.