Nexo Sues Former Director Over $7.9M Trading Loss

Crypto lender Nexo is trying to find a way to cover losses from BitMEX accounts that were locked in 2019.

Nexo is taking legal action against its former director Georgi Shulev, accusing him of breaching the agreement, according to Law360.

Nexo has sought the UK High Court to order Georgi Shulev to transfer nine crypto assets, including Bitcoin and Ether, to the company. That was meant to be a requirement of a settlement deal in which Shulev would be paid $1 million. The lender alleges that it was kept out of the trading platform BitMEX during a period when the value of cryptocurrencies fell, resulting in $7.9 million in losses.

HDR Global, the parent company of BitMEX, has asked the Supreme Court to determine who really is the account owner after Shulev stepped down from his position as Director of Nexo in 2019. Shulev and Nexo are obligated to notify the company. HDR after Nexo gained control of the account.

Between November and July, the cryptocurrency market had a dramatic decline, with Bitcoin falling from $69,000 to $17,500 and Ether dropping from $4,850 to $875. This is a kernel on the loss of Georgi Shulev.

For his part, Shulev retorted that Nexo had breached the agreement in the first of five installment payments to him, so he was unable to notify HDR that this acceptance dispute had been resolved.

The crypto lender has been aiming to profit from this year’s market fall by acquiring troubled companies such as rival crypto lenders Celsius Network and Vauld, both of which have frozen withdrawals owing to market pressures during the last two months.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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