Seattle-based cryptocurrency ATM operator Coinme has agreed to pay a $300,000 fine for violating California's daily transaction limits for cryptocurrency ATMs.
According to a law enacted last year, California set a daily transaction limit of $1,000 per customer for cryptocurrency ATMs. The California Department of Financial Protection and Innovation (DFPI) stated that the company also failed to provide the required disclosure information for customer receipts at its self-service terminals located in grocery stores and convenience stores across California.
This case marks the first enforcement action taken by the DFPI under the state's Digital Financial Assets Law.
Under the consent order, Coinme has agreed to pay the fine, which includes $51,700 in restitution to a California senior resident who claimed to have been defrauded.
DFPI Commissioner KC Mohseni stated that this enforcement action should "send a strong signal to cryptocurrency ATM operators" that the state is "serious about requiring digital asset companies to comply with rules to prevent scammers from exploiting unsuspecting Californians."
Cointelegraph has reached out to Coinme for further comment.
The DFPI indicated that scammers trick victims into purchasing cryptocurrency at ATMs and transferring funds directly into the scammers' wallets.
The Digital Financial Assets Law was enacted in 2023 specifically to address these risks through the regulation of self-service terminal operators.
In April, the FBI reported nearly 11,000 complaints related to cryptocurrency ATM scams in 2024, with losses exceeding $246 million, a 31% increase from 2023. Two-thirds of the scam victims were over the age of 60.
Spokane, Washington's second-largest city, took further action last week by banning cryptocurrency ATMs.
This move aims to protect citizens from scams and money laundering, with local police claiming that funds deposited into cryptocurrency self-service terminals ultimately flow to places like "China, North Korea, and Russia."
Meanwhile, the Australian Federal Police stated on Wednesday that as part of their crackdown on cryptocurrency ATM crimes, they have contacted over 90 citizens, including "pig-butchering" scam victims and alleged offenders.
In Texas, a county sheriff cut the power to a local cryptocurrency self-service terminal using a power-cutting tool after a report of a family being scammed out of $25,000 last week.
Related: Cryptocurrency ATM scam exposed: Seventy-year-old widow scammed out of $281,000
Original article: “Coinme Pays $300K Fine for Violating California Crypto ATM Laws”
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