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California Slaps Nexo With $500K Fine for Unlicensed Crypto Lending

California Slaps Nexo With $500K Fine for Unlicensed Crypto Lending

Author:

Global Cryptocurrency

Published:

2026-01-16 11:38:02

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BTCCSquare news:

Nexo faces a $500,000 penalty from California regulators for issuing thousands of unlicensed crypto-backed loans to state residents between 2018 and 2022. The crackdown highlights growing scrutiny of underwriting practices in digital asset lending.

Regulators found 5,456 violations, citing Nexo's failure to conduct credit checks or assess repayment capacity. The company must now transfer all California customer funds to a licensed U.S. affiliate within 150 days.

This enforcement adds to Nexo's $45 million in prior U.S. settlements over unregistered crypto products. Despite regulatory headwinds, the lender plans a comeback under tightened oversight—a test case for crypto compliance amid shifting frameworks.

By:

The Neuro-Cognitive Foundations of Early Financial Socialization

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