Coinme Fined $300K in California’s First Enforcement Under Digital Asset Law Amidst Increasing Crypto ATM Scams
Seattle-based crypto ATM supplier Coinme has been struck with a $300,000 charge for breaching California’s day-to-day crypto deal limits and failing to comply with disclosure guidelines at its kiosks, marking the state’s very first regulatory action under its new Digital Financial Assets Law. The post Coinme Fined $300K in California’s First Enforcement Under Digital Asset Law Amid Rising Crypto ATM Frauds appeared first on DeFi World.
Seattle-based crypto ATM supplier Coinme has been struck with a $300,000 penalty for breaching California’s day-to-day crypto deal limitations and stopping working to abide by disclosure rules at its kiosks, marking the state’s very first regulatory action under its brand-new Digital Financial Assets Law. The California Department of Financial Protection and Innovation (DFPI) revealed the enforcement decision, citing Coinme’s violation of the $1,000-per-day deal cap per client– a limitation imposed by the state last year to curb fraud through crypto ATMs. Coinme also overlooked to consist of necessary information on customer invoices at kiosks throughout corner store and supermarkets in California. Source: DFPI
As part of a consent order with the DFPI, Coinme agreed to the charge, which includes $51,700 in restitution to a senior who apparently came down with a crypto rip-off. The department stated fraudsters typically manipulate victims– a lot of whom are elderly– into purchasing crypto from kiosks and transferring funds directly to fraudulent wallets. Enacted in 2023, the Digital Financial Assets Law was designed to tighten up oversight of digital currency kiosks in response to growing consumer fraud. The DFPI stressed the requirement for more stringent compliance amidst increasing concerns about crypto ATM-related scams.
In April 2025, the FBI reported a spike in such frauds, with nearly 11,000 complaints and over $246 million in losses so far this year– up 31% from 2023. Alarmingly, around two-thirds of the victims were elders aged 60 and above. The crackdown isn’t isolated to California. Just recently, the city of Spokane, Washington, banned crypto ATMs entirely, citing a rise in scams and illicit activity. Local law enforcement declared funds transferred into kiosks were being funneled to countries like North Korea, Russia, and China. Australia is also ramping up efforts, with federal authorities contacting more than 90 individuals in an investigation targeting criminal activity through crypto ATMs. In Texas, authorities made headlines when a sheriff physically took apart a kiosk after a family reported losing $25,000 to a scam.
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