Nexo Fined $500,000 for Unlicensed Crypto Loans in California

2026-01-16 10:17

Nexo Capital has been fined $500,000 by the California Department of Financial Protection and Innovation (DFPI) for issuing over 5,400 unlicensed crypto-backed loans to California residents. The DFPI criticized Nexo for failing to assess borrowers' creditworthiness, increasing default risks. The firm must transfer all California resident funds to its US-based affiliate within 150 days. This regulatory action highlights increased scrutiny in the crypto lending sector, emphasizing the need for compliance with consumer protection laws. Nexo's previous regulatory challenges include a $45 million penalty earlier in 2023 for discontinuing its US Earn Interest program.

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