“Illegal suspension” of XRP payments at the end of last December caused a loss of 5 million dollars. Moreover, this incident caused Nexo to face a class-action lawsuit against the company’s own loan service. California’s Northern District Court accepted the lawsuit filed by plaintiff Junhan Jeong, who did not act on behalf of users with similar cases.

Nexo’s failure to announce the suspension removes the ability to repay the loan in XRP and use it as collateral. As a result, the failure to maintain the credit ratio resulted in hundreds of other customers being affected by the inability to sell the tokens and liquidating their currencies. It has been said:

“Nexo effectively forbade customers from maintaining their LTV and then punished them for failing to meet LTV rates.”

Jeong represents himself and other affected clients. He himself lost the $ 269,300 XRP that he used as collateral.


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