California's Department of Financial Protection and Innovation fined Nexo $500,000 for issuing thousands of unlicensed crypto-backed loans to over 5,400 residents without proper borrower evaluation. This enforcement adds to Nexo’s ongoing regulatory troubles, including past $45 million fines related to unregistered lending products. Nexo has since exited the U.S. market, but the company’s attempt to re-enter faces regulatory scrutiny amid concerns about compliance and systemic risks to consumers.