Nexo was fined $500,000 by California regulators for illegally issuing crypto loans.
TL;DR
Nexo was fined $500,000 by California regulators for issuing unlicensed crypto loans to residents from 2018 to 2022. The company must transfer funds to its licensed U.S. subsidiary within 150 days as part of the settlement.
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According to Foresight News , citing Cointelegraph, crypto lending company Nexo Capital has been fined $500,000 by the California Department of Financial Protection and Innovation (DFPI) for issuing loans to California residents without a license and failing to properly assess borrowers' repayment ability. Nexo issued at least 5,456 consumer and business loans to California residents between July 2018 and November 2022 without a valid license. Under the settlement agreement, Nexo must transfer all funds belonging to California residents to its U.S. subsidiary, Nexo Financial LLC, which holds a California financial lending license, within 150 days.