Last Updated on March 2, 2023 by Bitfinsider
According to a complaint submitted on Monday in the U.S. District Court for the Northern District of California, John Cress had an interest-bearing account with Nexo and transferred his digital assets to Next in order to collect interest. Instead of just earning interest on his own assets, Cress claimed that Nexo misled him into borrowing against his digital holdings and investing in complicated financial goods.
In the end, “Cress incurred millions of dollars in losses because of those misrepresentations when he was liquidated of virtually all his digital assets,” as the document puts it.
The lawsuit states that Cress has been involved in the cryptocurrency market for some time. In 2014, he invested in bitcoin, and in 2017, he invested in ether. In March of 2021, he moved those holdings to Nexo in the hopes of increasing his return on investment.
The SEC filed accusations against Nexo in January for neglecting to register the offer and selling of its Earn Interest Product, which Cress also mentioned. After negotiations with the SEC and state regulators, Nexo settled on a $45 million payment.
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