Author: Joe L. White, Jr.
Date: July 01, 2025
Reference: Conciliation Request – Nexo AG, Canton of Zug
Purpose
To demonstrate how core operational and jurisdictional flaws observed in the retail experience with Nexo AG could escalate into reputational collapse if replicated in their new high-net-worth individual (HNWI) strategy.
Factual Background
Nexo AG has recently expanded its positioning toward serving HNWIs, offering premium custody, structured products, and personalized crypto-backed credit. These offerings are designed to compete with Swiss private banking standards and require a robust foundation in compliance, data integrity, and jurisdictional clarity.
Yet, evidence from the retail experience reveals persistent weaknesses:
- Inaccessible or incomplete account records after liquidation;
- Apparent loss or non-retention of audit-grade log and transaction metadata;
- Jurisdictional evasions used to reroute data responsibility to offshore affiliates;
- Delayed or unfulfilled statutory data access requests under the Swiss Data Protection Act (FADP).
These failures are not cosmetic, they strike at the heart of operational resilience and legal accountability.
Claimant Perspective
As a retail client, I encountered system behaviors inconsistent with Swiss fiduciary expectations. Account history and transactional metadata became inaccessible at the most critical moment, after liquidation, impeding legal recourse and violating basic transparency norms. This type of failure is existential if extended to HNWI channels.
Private wealth clients demand predictable, auditable, and resilient systems. If a client with CHF 5M+ in assets were to experience a forced liquidation without access to complete account logs or a defensible audit trail, the reputational impact would likely be irreparable not only to the individual relationship but to Nexo’s broader market credibility.
Supporting Evidence or Reasoning
- Key Risks for HNWI Onboarding Teams:
- Lack of real-time transparency into margin risk and LTV thresholds;
- No user-level control over logs or metadata exports;
- No centralized Switzerland-based custodian for full-service accountability;
- Delegation of compliance questions to foreign affiliates undermines Swiss legal certainty.
- Disruption Cascade:
- One high-profile HNWI experiencing metadata loss or legal obstruction could trigger:
- Relationship termination with correspondent banks;
- Onboarding freezes at wealth management partners;
- Reputation-damaging coverage in niche financial press.
- Legal Exposure:
- Under Swiss FinSA Art. 10–12 and CO Art. 2, clients are owed clear disclosure and risk mitigation obligations. These failures risk triggering claims under both private and supervisory law.
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.