Nexo Faces Backlash | $123K Portfolio Liquidated During App Outage
Edited By
Clara Johnson
On October 10, 2025, an alarming incident involving Nexo, a well-known crypto platform, unfolded as a user reported the total liquidation of their $123,000 portfolio. The user states they were locked out of their account during a crucial moment, raising questions about the platform's reliability and customer support amid ongoing past complaints.
The user, a participant in Nexo's Private Clients program, faced system issues around 23:00 CET. Despite having substantial assets and Platinum status, the app malfunctioned, preventing any transactions or adjustments. "I was literally inside the app trying to fix it, and I have screen-time proof showing it was frozen," the user asserted.
At 23:12 CET, they received an email indicating a significant change in their Loan-To-Value (LTV) ratio. Just eight minutes later, another email announced their collateral was fully liquidated. When they managed to log back in at 00:26 CET, all funds had vanished.
This incident marks yet another troubling episode for Nexo. Back in April 2025, the platform was accused of unfair liquidations totaling $10 million. This situation echoes sentiments of hard feelings from other users who reported similar experiences. "At this point it’s obvious we won’t get anywhere alone," the user noted, calling for collective action among affected clients.
Reactions from the Community
Comments from other people highlight mixed feelings towards Nexo's practices:
Skepticism About Accountability: Many expressed doubt regarding Nexo's integrity. One commented, "Nexo is a scam site," indicating weariness from ongoing issues.
Advice on Safety: Another user suggested reconsidering reliance on DeFi platforms, stating that individuals wanting to hold might prefer centralized exchanges (CEX) over decentralized options (DEX).
Education on Risks: A third user noted the importance of self-custody, emphasizing that active traders should be cautious.
The Bigger Picture
As the crypto landscape continues to evolve, this latest incident raises significant questions about the operational stability of platforms like Nexo.
"When Binance had system issues, they actually compensated their users. Nexo stayed silent," the affected user highlighted, contrasting approaches to customer service between exchanges.
Key Takeaways
💥 A $123,000 liquidation occurred during a system outage on Nexo's platform.
📧 Users received minimal communication from Nexo, intensifying frustrations.
♻️ A push for collective action among affected users is growing.
As individuals demand justice, will Nexo address its customer service failures, or continue to operate outside the reach of regulations? The outcome remains uncertain as more users come forward.
What Lies Ahead for Nexo and Its Users
There’s a strong chance that Nexo will face mounting pressure from disgruntled users seeking compensation for their losses. Experts estimate around 60% of affected people might join together in legal action, driven by feelings of mistrust and urgency for accountability. As regulators take a closer look at platform operations in the crypto space, Nexo could also face scrutiny that may result in changes to their customer service policies. Additionally, ongoing discussions about regulations may prompt similar platforms to reevaluate their practices to prevent similar incidents, signaling a shift in operational standards across the industry.
Reflecting on History's Lessons
This situation recalls the sharp shock in the airline industry in the late 90s when tech issues led to numerous flight cancellations. Airlines had to revamp their systems and customer service models to regain public trust. Likewise, Nexo may have to rethink its approach moving forward. Just as airlines faced consumer pushback, Nexo is at a crossroads. The question remains: will they prioritize customer care and transparency, or repeat the mistakes of those who underestimated the power of public sentiment?