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Nexo Fined $500,000 by California Regulators for 'High-Risk Loans'
Summary: According to Cointelegraph, cryptocurrency lending company Nexo Capital will pay a $500,000 fine to the California Department of Financial Protection and Innovation. Regulators accused the company of issuing thousands of loans to California residents without a valid license and without properly assessing borrowers' repayment abilities. Between July 2018 and November 2022, Nexo issued at least ...
According to Cointelegraph, cryptocurrency lending company Nexo Capital will pay a $500,000 fine to the California Department of Financial Protection and Innovation. Regulators accused the company of issuing thousands of loans to California residents without a valid license and without properly assessing borrowers' repayment abilities. Between July 2018 and November 2022, Nexo issued at least 5,456 consumer and business loans to California residents without a valid loan license, often without assessing borrowers' financial conditions such as repayment ability, existing debts, or credit records before lending. Nexo is required to transfer all funds of California customers to its U.S. affiliate entity, Nexo Financial LLC, which holds a California loan license, within 150 days.
