Public Interest Disclosure
Title: The Truth About Nexo’s Regulatory Claims and Associated Consumer Risks
Submitted by: Joe L. White, Jr.
Date: July 01, 2025
Reference: Conciliation Request – Nexo AG
Introductory Statement
This public service article is submitted as an annex in support of my conciliation request and is intended for concurrent publication at the time of filing. The article reflects my personal experience and investigative findings as a former client of Nexo AG and is presented in the public interest to help protect other consumers from misunderstanding the regulatory status of this entity.
The statements below are supported by public records, direct correspondence with regulatory authorities, and firsthand experience. I believe the inclusion of this annex not only underscores the personal harm I experienced, but also illustrates the broader public risk that justifies conciliation and disclosure.
The Truth About Nexo’s Regulatory Claims and Associated Consumer Risks
🚨 If you have funds on Nexo, please read this carefully. 🚨
For years, Nexo has publicly marketed itself as a “licensed & regulated financial institution,” creating the impression of safety and credibility to potential customers. However, this claim does not reflect the regulatory reality. Nexo AG operates in a legal and regulatory gray zone that leaves clients with no meaningful protections.
This annex outlines the key facts, based on my personal experience and independent verification with Swiss authorities.
The Central Misrepresentation: “Nexo is a Licensed & Regulated Financial Institution”
Nexo regularly makes the claim in customer communications and marketing materials that it is “a licensed and regulated financial institution.” This wording is carefully crafted to instill trust—particularly among U.S. customers unfamiliar with Swiss regulatory nuance.
However, Switzerland’s financial regulator, FINMA, has confirmed the truth:
“Nexo AG is not licensed by FINMA to engage in activities in the financial sector, nor is it a member of a self-regulatory organization (SRO), i.e., as a financial intermediary in the non-banking sector.”
– Official FINMA response to inquiry regarding Nexo AG
This means that Nexo is not subject to any meaningful regulatory oversight in Switzerland despite using the country’s reputation as a financial safe haven in its branding.
Why This Misrepresentation Is Dangerous
Clients, particularly from jurisdictions like the United States, are led to believe that their assets are protected in a manner similar to regulated banking institutions. This assumption is false. In the event of corporate failure, platform abuse, or asset loss, clients have no legal recourse under Swiss financial law, as Nexo AG does not fall under FINMA’s jurisdiction.
In practical terms:
- There are no depositor protections
- No insurance or guarantee schemes
- No external auditing required by regulators
- No enforceable transparency obligations
- No path for restitution under Swiss banking or financial regulation
Swiss Address ≠ Swiss Regulation
Nexo AG’s legal presence in Zug, Switzerland, is often mistaken for evidence of regulatory integrity. This is a dangerous assumption.
The facts:
- Nexo AG is not a member of any Swiss Self-Regulatory Organization (SRO).
- Nexo uses its Swiss business registration and address as a veneer of legitimacy while operating outside the scope of Swiss financial supervision.
- Nexo has, as of this filing, not addressed FINMA’s confirmation of non-licensure in any customer-facing statement or correction.
Implications for Investors
Investors should be aware of the following risks:
- If Nexo were to collapse or misappropriate client funds, no Swiss authority is obligated or even authorized to intervene on behalf of customers.
- Any legal action would need to be pursued privately, with no regulatory body offering investigative or enforcement support.
- Clients are at significant financial risk under this model of unregulated custody and lending.
Final Message to the Public
This disclosure is being submitted and published to prevent others from being misled as I was. I trusted Nexo’s marketing and assumed that a Swiss-based company would comply with Swiss banking standards. This assumption cost me dearly.
If you currently have funds on the platform, I urge you to investigate the facts for yourself and make informed decisions. Nexo’s regulatory representations should not be taken at face value.
Consumers must understand: There is no Swiss safety net.
Your assets are not protected under Swiss financial law.
Withdraw your funds while you still can.
Statement of Intent
This annex is submitted in support of a good-faith civil conciliation request under ZPO Art. 202–204. The claimant asserts that the conduct described herein warrants regulatory attention and damages due to misrepresentation and unsupervised financial intermediation. No proprietary platform information is disclosed, and all references are based on claimant usage, public materials, and industry guidelines.
Disclaimer
This document is submitted in good faith, based solely on the claimant’s personal experience and publicly available facts. No confidential or privileged information has been disclosed. All statements reflect the claimant’s beliefs or recollections unless otherwise indicated. Names of third parties are anonymized or redacted where not publicly implicated. The purpose of this release is transparency, accountability, and resolution not defamation or harm.
Legal Context Note
This annex was authored solely by the claimant as part of a lawful civil conciliation filing under Articles 202–204 of the Swiss Civil Procedure Code (ZPO). It does not contain any confidential statements made during the conciliation hearing, nor does it disclose settlement terms or other protected materials governed by ZPO Art. 205.
The annex is based exclusively on:
- Personal experience,
- Publicly available information, or
- Facts the claimant is legally entitled to share.
Its purpose is to document the legal and factual basis for the claimant’s grievance, promote transparency, and serve the public interest where legal oversight may be insufficient.
The annex adheres to Swiss privacy and defamation standards under ZGB Art. 28, the Data Protection Act (DSG), and applicable banking/professional secrecy provisions (BankG, StGB Art. 321).
It is not an official court document, and no information disclosed herein was obtained through the hearing process.