Nexo Liquidated $123K Portfolio | Users Outraged Over App Failures

A growing number of users are expressing outrage as Nexo liquidated a portfolio worth $123,000 during severe app malfunctions on October 10, 2025. Reports indicate similar incidents occurred earlier this year, raising alarm about the platform's reliability and management practices.

Technical Glitch or Systemic Issue?

Frustration reached a boiling point when the Nexo app crashed at 23:00 CET, preventing users from managing their accounts. An affected user reported receiving an email about changes to their loan-to-value (LTV) ratio at 23:12, followed by a notification of total liquidation just minutes later. The user only regained access at 00:26 CET, to find their entire portfolio vanished.

"Many have expressed frustration, indicating this isn't an isolated incident," one user commented, echoing thoughts shared across various forums.

The Ripple Effect of Unfair Liquidations

Earlier reports from April 2025 highlighted that Nexo faced accusations of unfair liquidations totaling $10 million. Users at that time noted app outages and minimal communication from Nexo before their assets disappeared. Comments across forums reflect a strong sentiment of distrust.

Interestingly, users shared a consistent theme, associating the recent liquidation with prior malfunctions. One comment pointed out, "You made the bed and now don’t care to lie in it. Too bad. So sad," suggesting a lack of sympathy among certain users for those affected, while others advocated for transitioning to decentralized finance for better security.

Accountability in Question

Nexo, incorporated in the Cayman Islands, appears insulated from legal accountability, especially for affected users in the EU and US. Unlike competitors such as Binance, which compensated users affected by platform issues, Nexo remains silent. "Nexo isn’t giving anyone answers," stated an affected user. Users are increasingly frustrated, feeling powerless as they confront significant losses without support from the company.

Community Backlash

The sentiment in various forums is mostly negative. Users feel betrayed by centralized platforms and are calling for collective action. Highlights from user comments include:

• **"This is why I have a cold wallet!"

-** "Not your keys, not your crypto."

• "Those who want to actively trade should really take self-custody and use DEXs."

Key Insights

• △ Users express growing discontent: Many report issues similar to the October 10 liquidation event.

• ▽ History of grievances: Concerns regarding liquidations date back to earlier incidents, totaling $10 million.

• ※ "Nexo has ignored every attempt for clarification" - An aggrieved user calls for organized action.

As public scrutiny intensifies, will Nexo take steps to address these serious allegations? Only time will reveal their next move, but with increasing frustration among users, a shift in accountability may be on the horizon.