Nexo was fined $500,000 by California regulators for "high-risk lending".

According to a report by Cointelegraph, crypto 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 failing to properly assess borrowers' repayment ability. The regulators stated that between July 2018 and November 2022, Nexo issued at least 5,456 consumer and business loans to California residents without a valid lending license, and typically failed to assess borrowers' repayment ability, existing debt, or credit history before lending. Nexo must transfer all funds from its California customers to its U.S. affiliate, Nexo Financial LLC, which holds a California lending license, within 150 days.