San Diego Man Says He Lost His Entire Life Savings in Crypto After $6M Portfolio Vanished

Joe White spent years working for start-up companies and building savings for retirement. He thought he had finally secured his financial future. But after moving his cryptocurrency investments to Nexo, he says the value of his holdings collapsed.

The San Diego man told ABC 10News that he invested his life savings through Nexo, a cryptocurrency platform. At one point, a screenshot from his account showed a portfolio worth nearly $6 million. His case has also drawn attention because California regulators later took action against Nexo over its lending activity in the state.

White Put His Life Savings Into Nexo

White said he worked at more than 10 start-ups before benefiting from a successful company exit and using the proceeds to build his retirement savings. He said he first came across Nexo through Reddit and was later introduced to the platform by a former co-worker. In 2021, White transferred his cryptocurrency investments to Nexo.

He showed ABC 10News a bank record documenting a $1 million wire transfer to Nexo, but said he no longer has complete records of his transactions. He also occasionally withdrew money for ordinary living expenses.

Crypto Collateral Was Liquidated

Nexo offers a crypto-backed credit line, allowing customers to borrow against cryptocurrency rather than selling it. White said he did not fully understand that a decline in cryptocurrency prices could trigger the liquidation of his collateral. When the market fell, he said Nexo liquidated his assets. He compared the experience with a home equity line of credit, saying he did not expect a decline in the value of an asset to result in the asset itself being sold.

California Regulator Found Licensing Violations

White reported his experience to several agencies, including the California Department of Financial Protection and Innovation, the District Attorney's Office and the Federal Trade Commission. In January 2026, the DFPI issued a consent order involving Nexo Capital.

The DFPI said Nexo Capital contracted for and originated loans involving 5,456 California residents between 2018 and 2022 without the finance lender licence required under California law. The DFPI also said the company could automatically liquidate cryptocurrency collateral when its market value fell.

The consent order does not name White or make a finding about his individual account. But White said the circumstances described by the regulator are consistent with his account of what happened. The DFPI fined Nexo $500,000. The company neither admitted nor denied the findings.

Nexo Says the Matter Was Resolved

A Nexo spokesperson told ABC 10News that the consent order concerned legacy issues from an earlier stage of the company's business. The company said the matter was resolved through a settlement and that Nexo continues to hold a California licence. Nexo also said detailed risk disclosures are provided across its products and customer materials. The company said its credit line product is not currently available in California.

Nexo has also faced federal regulatory action. In 2023, it agreed to pay $22.5 million to settle SEC charges involving one of its crypto products. The SEC said the product had not been properly registered and that the company had bypassed disclosure requirements designed to protect investors.

White Says Recovering the Money Is Difficult

White said obtaining his financial records from Nexo has been one of the biggest obstacles to pursuing his case. He contacted lawyers about possible legal action but said the cost became too high.

He said Nexo's corporate structure, involving entities in different countries, has also complicated his efforts. White said he discovered that Nexo Capital is based in the Cayman Islands. He continues to have an active complaint with the DFPI. The regulator's consent order does not determine whether White is entitled to recover his losses.

White added the loss has affected his entire family. He wanted to help care for his parents but said he can no longer provide the financial support he had planned. His daughter has helped him with expenses, while his parents have taken in renters and used spare bedrooms to meet their costs. White said the experience became so difficult that he eventually asked his sister for help.