Nexo to pay $500K fine to California regulator over ‘risky loans’

California’s finance watchdog claims Nexo made nearly 5,500 loans to Californians without a valid license and did not properly assess their ability to repay.

Crypto lending company Nexo Capital will pay a $500,000 to California’s financial regulator over allegations it issued thousands of loans to state residents without properly assessing their ability to repay.

The California Department of Financial Protection and Innovation (DFPI) said on Wednesday that Nexo made at least 5,456 consumer and commercial loans to Californians without a valid license.

“Before making a loan, Nexo Capital generally did not evaluate the borrower’s ability to make timely repayments, existing debt, credit history, or other documents relating to the borrower’s overall financial condition,” the regulator said.

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