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ARTICLE · 26 JANUARY 2026

DFPI Orders Crypto Lending Platform To Pay $500,000 For Alleged Unlicensed Lending And Underwriting Failures

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On January 14, the DFPI announced a consent order requiring a crypto lending platform to pay $500,000 in penalties for alleged violations of the California Financing Law and the California Consumer Financial Protection Law.

United StatesTechnology
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On January 14, the DFPI announced a consent order requiring a crypto lending platform to pay $500,000 in penalties for alleged violations of the California Financing Law and the California Consumer Financial Protection Law. According to the regulator, the company offered crypto-backed consumer and commercial loans to California residents without obtaining a required finance lender license and without adequately considering borrowers' ability to repay.

The consent order resolves allegations arising from DFPI's examination of the platform's crypto-backed lending program, which the Department alleges was offered to California residents between 2018 and 2022 through a website and mobile application. The company neither admitted nor denied the findings set forth in the order.

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