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Nexo Fined $500K by California Regulators Over Unlicensed Crypto-Backed Loans

Nexo Fined $500K by California Regulators Over Unlicensed Crypto-Backed Loans

Author:

Global Cryptocurrency

Published:

2026-01-16 21:11:01

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BTCCSquare news:

California's Department of Financial Protection and Innovation (DFPI) has imposed a $500,000 penalty on Nexo for issuing over 5,456 unlicensed loans backed by crypto assets between 2018 and 2022. The regulator found Nexo failed to properly assess borrowers' repayment capacity, violating state consumer finance laws.

As part of the settlement, Nexo must transfer Californian customers' funds to its licensed U.S. affiliate, Nexo Financial LLC, within 150 days. This enforcement follows Nexo's $45 million in prior settlements with other regulators in 2023, highlighting ongoing scrutiny of crypto lending practices.

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