California penalizes Nexo $500,000 for risky crypto loans
- Supporting data: Nexo originated 5,456 loans for California residents without a valid license between July 2018 and November 2022.
- Key insight: While Nexo marketed its lack of credit checks, California law requires lenders to evaluate a borrower’s ability to repay a loan.
- Expert quote: “Lenders must follow the law and avoid making risky loans that endanger consumers — and crypto-backed loans are no exception,” said DFPI Commissioner KC Mohseni.
Overview bullets generated by AI with editorial review
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California regulators fined cryptocurrency platform Nexo Capital $500,000 for issuing thousands of loans in the state without a license.
The California Department of Financial Protection and Innovation, or DFPI, announced
