AbstrackThis research aims to examine two central issues: the legalimplications of the default and fraud case involving PTInvestree Radhika Jaya on the stability of Indonesia’sdigital financial industry, and the impact of inadequateoversight by the Financial Services Authority (OJK) on thedevelopment of the fintech lending sector. The studyaddresses the following research questions: (1) how theInvestree case reveals fundamental weaknesses incorporate governance and the legal protection of lenders,and how these weaknesses affect industry stability; and (2)how insufficient regulatory supervision contributes toincreased risks, diminished public confidence, and long-term challenges for the sustainability of the fintechlending ecosystem. Employing a normative juridicalmethod supported by a statute approach and case-studyapproach, this research analyzes relevant laws andregulations, alongside empirical findings, through aprescriptive analytical framework. The results show thatinternal fraud and governance failures within Investreegenerated systemic consequences, including severe erosionof public trust, heightened default risks, and the potentialfor contagion across platforms. Furthermore, OJK’slimited supervisory capacity has enabled moral hazard,hindered consumer protection, intensified legaluncertainty, and slowed the development of adaptiveregulatory frameworks. The study concludes thatcomprehensive regulatory reform, supervisorytransformation, and strengthened legal safeguards areessential to ensuring the healthy, accountable, andsustainable growth of fintech lending in Indonesia.Keywords: Fintech Lending; Legal Implications;Regulatory Oversight.