Nexo fined $500,000 by California regulators for "high-risk lending".

PANews reported on January 16 that, according to Cointelegraph, crypto lending company Nexo Capital will pay a $500,000 fine to the California Department of Financial Protection and Innovation. The regulator accused the company of issuing thousands of loans to California residents without a valid license and failing to properly assess borrowers' repayment ability.

Regulators stated that between July 2018 and November 2022, Nexo issued at least 5,456 consumer and business loans to California residents without holding a valid lending license, and typically failed to assess borrowers' repayment ability, existing debt, or credit history before lending. Nexo is required to transfer all funds belonging to its California customers to its U.S. affiliate, Nexo Financial LLC, which holds a California lending license, within 150 days.