California Fines Nexo $500,000 for Unlicensed Crypto Lending
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 16 2026- Regulatory Penalty: California regulators fined Nexo $500,000 for providing unlicensed crypto-backed loans to 5,456 residents from 2018 to 2022, highlighting increasing compliance risks in the crypto lending sector.
- Customer Fund Transfer Requirement: Nexo must transfer all California customer funds to a licensed US affiliate within 150 days, aiming to protect consumers and ensure compliance, thereby complicating the company's operations.
- Borrower Assessment Failures: Regulators noted Nexo's failure to assess borrowers' repayment abilities, lacking reviews of existing debts and credit history assessments, which could amplify consumer risk during market stress.
- Cumulative Historical Fines: This penalty brings Nexo's total US fines in 2023 to $45 million, intensifying regulatory pressure on the company and leading to its exit from traditional lending services in the US market.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
