Nexo, a leading token exchange and lending platform, has commented publicly on issues surrounding the SEC lawsuit against Ripple, and its decision to suspend XRP positions in its exchange, as well as temporary credit lines, and repayments.
Like many companies in the cryptocurrency space, Nexo opted to drop XRP from its product offerings in late 2020.
The Securities and Exchange Commission, the US regulator in charge of financial markets, brought suit against Ripple Labs in 2020, which make the price of XRP plummet on a temporary basis.
Today, the situation looks different – and according to Nexo, the company has been attacked for its move to drop XRP.
In a recent blog post, the exchange went on the record, and stated the following –
- Nexo has been subjected to defamation and aggressive blackmail attacks via various media and communication channels by several former clients liquidated as a result of the December 2020 XRP crash
- As attempts to settle amicably were not accepted by the individuals in question, Nexo is taking legal action to address the matter
- The company asserts that any further attacks upon its reputation, including any meritless lawsuits, will be addressed with equal severity and through the applicable legal instruments and mechanisms
The SEC created a situation where companies that wanted to avoid issues in the Western world had to consider the backlash they may face if they kept dealing in XRP – and Nexo took the safe route, and worked to keep up with a very murky regulatory environment.
Nexo Wasn’t Alone
When the SEC brought suit against Ripple in late 2020, numerous major companies couldn’t dump XRP fast enough.
As the USA has given little in the way of solid guidance on what cryptos actually are from a regulatory standpoint, aside from taxable assets, so we shouldn’t be surprised that when there is legal action – companies will pay attention.
As Nexo stated in the same post –
“To comply with the applicable laws and regulations in the…