Another crypto lending platform has run into regulatory trouble. Nexo Capital was recently targeted by the California Department of Financial Protection and Innovation, and the reasons are significant — between July 2018 and November 2022, this company issued at least 5,456 loans to California residents without a valid license. Even more outrageous, they hardly checked the borrower's repayment ability, debt situation, or even credit history before lending. The regulatory agency has imposed a penalty: a fine of $500,000, and that's not all. Nexo has 150 days to transfer all funds from California clients to Nexo Financial LLC, their licensed affiliate in the US. In plain terms, this highlights how serious the risks are when compliance awareness is lacking. Lending may seem simple, but risk control and regulation are indispensable, especially in the US regulatory environment.