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How did Nexo take $15000 from me and now wants even more $$$
Hi 👋
You are thinking about taking your Assests at Nexo Financial LLC? Then you are like me when I decided to entrust my savings to this young exciting company. They call themselves the leading regulated digital asset institution and pioneer of the 1st Instant Crypto Credit Lines™ with high-yield Earn Crypto Interest product.
Furthermore, a "Maximum Security for Your Digital Assets" is promised. According to their website, this is ensured with the help of an "overcollateralized lending model, and secure-by-design infrastructure". Sounds really great, doesn't it? But as Shakespeare once said "All that glitters is not gold". We all know how volatile the crypto market is 📉
Let me show you how Nexo took a total of $14,663.95 from me with their "infrastructure" and now wants another $8000 from me. Sounds crazy, doesn't it?
If you want to know why my $15k was liquidated - I summarized the overall situation in the Reddit below:
You are thinking about taking your Assests at Nexo Financial LLC? Then you are like me when I decided to entrust my savings to this young exciting company. They call themselves the leading regulated digital asset institution and pioneer of the 1st Instant Crypto Credit Lines™ with high-yield Earn Crypto Interest product.
Furthermore, a "Maximum Security for Your Digital Assets" is promised. According to their website, this is ensured with the help of an "overcollateralized lending model, and secure-by-design infrastructure". Sounds really great, doesn't it? But as Shakespeare once said "All that glitters is not gold". We all know how volatile the crypto market is 📉
Let me show you how Nexo took a total of $14,663.95 from me with their "infrastructure" and now wants another $8000 from me. Sounds crazy, doesn't it?
If you want to know why my $15k was liquidated - I summarized the overall situation in the Reddit below:
UPDATE: After I unlocked the site, the old posts from Reddit were also deleted. But I have saved the old posts, here you can read what happened:
• Post 1 (March 15, 2021)
• Post 2 (May 24, 2021)
Simultaneously with the go-live of this website I posted the same text as here also @ Reddit, within a very short time this post has almost 100 upvotes, but then the post was deleted by a Nexo moderator:
• Post 3 (October 16, 2021)
For those who don't want to read through the Reddit Posts: I wanted to repay my entire loan on 04/30/2021 - just before the crypto crash in May 2021, however I constantly ran into an error in the loan repayment process on their platform.
A Nexo employee explained to me on the same day that it was a technical discrepancy. Sadly, even after 2 weeks, I was still told by Nexo that I needed to be patient as it was a complex issue. Unfortunately, after 3 weeks the big Crypto Crash occurred and since I had not been able to repay my loan for weeks due to technical errors by Nexo, assets worth almost $15,000 were liquidated.
Of course I contacted Nexo several times asking for a refund, however I received no response. Only after I asked in an AMA where the CEO answers questions from the community, I received an email in which I was promised a "special program":
So, I was told I had to be patient and that I was on a waiting list - what I didn't know at the time: Even in October 2021, so 5 months later I still should not have my assests back. Instead, they would like to get $8000 from me! After almost 3 months of absolute silence on the part of Nexo and several messages on my part, I finally received an answer and was offered the so-called "Special Crypto Relief Program":
In simple terms, the employee wanted to tell me: Deposit money, then we will leverage you again and charge fees. That is so ugly! Why?
Nexo waited over 3 months to provide details on their "Special Offer" for me and always asked me to be patient as the market needed to stabilize. Now the Ether price is over $3800 (10/16/2021) and due to the technical error my assets were liquidated at around $1800. They liquidated my assets at a ridiculous price and already made a good deal with it! And now they want even more money from me.
The offer from Nexo is to give me back my $15000 in the form of a loan, which then includes fees and costs for their "special" program. BUT they will only do that if I deposit another $8000. So If I would pay back my credit then (which was always my goal), I would have even less than $8000 in my account. This is an absolute cheek - this is so outrageous that I don't want to comment further on this ridiculous program.
Summary: Stay away from Nexo! And trust your assests to a company that is also licensed in your country with the respective regulatory authority.
Nexo does not sufficiently protect its customers in exceptional situations and as a young startup, mistakes can always happen. Their "infrastructure" is set up in such a way that even with the loss of a customer, profit continues to be made - see this dubious "Special Crypto Relief Program".
You should know that this is not the first time Nexo have done something like this. In a similar case involving far more people and also huge sums of money, Nexo tried with their lawyers not to have to pay compensation to the victims. Even though they fortunately failed.
Here is an article about it: https://news.bitcoin.com/nexo-sued-liquidation-xrp-sec-ripple-lawsuit/
And here are the entire court documents: https://storage.courtlistener.com/recap/gov.uscourts.cand.376200/gov.uscourts.cand.376200.1.0.pdf
Nexo waited over 3 months to provide details on their "Special Offer" for me and always asked me to be patient as the market needed to stabilize. Now the Ether price is over $3800 (10/16/2021) and due to the technical error my assets were liquidated at around $1800. They liquidated my assets at a ridiculous price and already made a good deal with it! And now they want even more money from me.
The offer from Nexo is to give me back my $15000 in the form of a loan, which then includes fees and costs for their "special" program. BUT they will only do that if I deposit another $8000. So If I would pay back my credit then (which was always my goal), I would have even less than $8000 in my account. This is an absolute cheek - this is so outrageous that I don't want to comment further on this ridiculous program.
Summary: Stay away from Nexo! And trust your assests to a company that is also licensed in your country with the respective regulatory authority.
Nexo does not sufficiently protect its customers in exceptional situations and as a young startup, mistakes can always happen. Their "infrastructure" is set up in such a way that even with the loss of a customer, profit continues to be made - see this dubious "Special Crypto Relief Program".
You should know that this is not the first time Nexo have done something like this. In a similar case involving far more people and also huge sums of money, Nexo tried with their lawyers not to have to pay compensation to the victims. Even though they fortunately failed.
Here is an article about it: https://news.bitcoin.com/nexo-sued-liquidation-xrp-sec-ripple-lawsuit/
And here are the entire court documents: https://storage.courtlistener.com/recap/gov.uscourts.cand.376200/gov.uscourts.cand.376200.1.0.pdf