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

PANews January 16 News, according to Cointelegraph, the crypto lending company Nexo Capital will pay a $500,000 fine to the California Department of Financial Protection and Innovation. The regulatory agency accused the company of issuing thousands of loans to California residents without holding a valid license, and failing to properly assess borrowers’ repayment ability.
The regulatory agency stated that from July 2018 to November 2022, Nexo issued at least 5,456 consumer and commercial loans to California residents without a valid lending license, and often did not evaluate borrowers’ repayment capacity, existing debts, or credit history before lending. Nexo must transfer all funds of California customers to its U.S. affiliate, Nexo Financial LLC, which holds a California lending license, within 150 days.