Nexo sues former director over withheld cryptocurrency holdings

Cryptocurrency lender Nexo has launched a lawsuit against a former director of the company, Georgi Shulev.

Documents revealed by Law360 suggest that Shulev failed to stick to a settlement agreement the two parties had negotiated.

Nexo placed a request with the UK High Court to order Shulev to transfer cryptocurrency holdings back to the company, something that Shulev did later than expected.

Effectively, Nexo argued that it had been locked out of BitMEX when a cryptocurrency crash occurred, resulting in losses it has estimated at $7.9m.

However, HDR Global, which owns BitMEX, needed time to establish the custody of the account as Shulev left Nexo in 2019. Both parties were supposed to warn BitMEX about the change, but Shulev had refused to do so, Nexo contends.

“Nexo is entitled to and claims damages for the breach”, the lender said.

The number of cryptocurrency lenders is only going one way – up. Celsius Network, Voyager Digital and many others bore the brunt of the most recent cryptocurrency market crash, although some argue they were partially to blame.

The depletion of Terra USD as a stablecoin and alleged mismanagement of 3AC funds have all been put forward as contributing factors.

Players who wish to explore cryptocurrency uses for entertainment purposes only are recommended to turn to websites such as 1xBit, FortuneJack and Bitcasino.


Updated: 08/18/2022 — 20:00