2026-01-16 04:28:38

California Department of Financial Protection and Innovation (DFPI) has issued a fine to the crypto lending platform Nexo Capital. Where is the core issue? The platform issued over 5,000 loans to California users without a valid license — just this alone is enough to be considered a violation.

Even more concerning is the lack of risk control. Nexo failed to perform basic borrower qualification assessments, never verifying income, debt, or credit status. What does this mean? It indicates a high risk of loan default. Regulatory investigations revealed that from July 2018 to November 2022, nearly four years, Nexo’s lending policies were just for show, and its risk management system was virtually non-existent.

The final penalty is $500,000. And this isn’t the first time — Nexo was forced to exit the U.S. interest-bearing product market early in 2023 and reached a $45 million settlement with regulators.

What does this case demonstrate? No matter how trendy crypto financial products are, compliance must be maintained.

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NftRegretMachine

· 7h ago

It's Nexo again. This guy really treats compliance as a joke... Risk control is a sham and he still managed to hold on for four years, that's impressive.

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DefiEngineerJack

· 7h ago

well actually™ this is precisely why formal verification matters lmao. nexo's risk management was basically non-existent... like empirically speaking, 5000+ loans without proper kyc is just asking to get rekt. the regulatory framework caught up with them hard ngl

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TrustlessMaximalist

· 7h ago

Another one treating risk control as a decoration... Nexo's downfall this time is well-deserved, having not reviewed a single borrower in four years. They really dare to do that.

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WalletWhisperer

· 7h ago

nah but the statistical significance here is wild... nexo's risk management literally showed zero behavioral indicators of actual due diligence across 5k+ transactions. pure algorithmic negligence masked as innovation. 50k fine doesn't even scratch the surface of their accumulated liability patterns.

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DaisyUnicorn

· 7h ago

Tsk, Nexo's recent actions are truly a textbook example of "not learning from past mistakes"... Five thousand unlicensed loans, with risk control virtually nonexistent. How ruthless must one be to skip even basic income verification? Do they really think regulators are just air? Haven't they had enough of the 45 million settlement earlier? Now there's another 500,000 fine. Things are only getting worse.

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StablecoinAnxiety

· 7h ago

Damn, Nexo's operation is really reckless. Unlicensed lending for four years without any risk control. No wonder they got fined.

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