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How did Nexo take $15000 from me and now wants even more from me
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.
Sounds almost too good to be true, huh? But really, when the markets are just growing, it's really fun at Nexo. 💸
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?
But after that you will understand how Nexo protects your assests "to the maximum" @ themselves 😉 So, 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.
Sounds almost too good to be true, huh? But really, when the markets are just growing, it's really fun at Nexo. 💸
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?
But after that you will understand how Nexo protects your assests "to the maximum" @ themselves 😉 So, if you want to know why my $15k was liquidated - I summarized the overall situation in the Reddit below:
For those who don't want to read through the Reddit: I wanted to repay my entire loan on 30.04.2021 - 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, however, 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 (thanks for the votes Reddit fam 😘), 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...
...so 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 almost 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 (16.10.2021) and due to the technical error my assets were liquidated at around $1800. This is so outrageous that I don't want to comment further on this ridiculous program.
Summary: Just 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, then when the volatile crypto market has its fingers in the pie as in my case, Nexo lets you down. 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.
If you want to see for yourself, here are the entire court documents: https://storage.courtlistener.com/recap/gov.uscourts.cand.376200/gov.uscourts.cand.376200.1.0.pdf
And here is an article about it: https://news.bitcoin.com/nexo-sued-liquidation-xrp-sec-ripple-lawsuit/
If anyone from Nexo should read this: You know very well that you are not officially registered with BAFIN in my home country Germany and therefore I will probably not stand a chance legally as an individual, especially since you have taken all my savings. Really clever Nexo! 👏 I have been patient for 5 months now and in my countless emails to you I have always been polite, but you know what I finally want to tell you:
F*** you!
Nexo waited almost 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 (16.10.2021) and due to the technical error my assets were liquidated at around $1800. This is so outrageous that I don't want to comment further on this ridiculous program.
Summary: Just 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, then when the volatile crypto market has its fingers in the pie as in my case, Nexo lets you down. 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.
If you want to see for yourself, here are the entire court documents: https://storage.courtlistener.com/recap/gov.uscourts.cand.376200/gov.uscourts.cand.376200.1.0.pdf
And here is an article about it: https://news.bitcoin.com/nexo-sued-liquidation-xrp-sec-ripple-lawsuit/
If anyone from Nexo should read this: You know very well that you are not officially registered with BAFIN in my home country Germany and therefore I will probably not stand a chance legally as an individual, especially since you have taken all my savings. Really clever Nexo! 👏 I have been patient for 5 months now and in my countless emails to you I have always been polite, but you know what I finally want to tell you:
F*** you!