Seattle-based crypto ATM operator Coinme has agreed to pay a $300,000 fine after violating California’s daily transaction limits for crypto ATMs. Under a law enacted last year, the state caps such transactions at $1,000 per customer per day.
According to the California Department of Financial Protection and Innovation (DFPI), Coinme also failed to include legally required disclosures on customer receipts at its kiosks, which are located in grocery and convenience stores throughout the state.
This marks the DFPI’s first enforcement action under California’s new Digital Financial Assets Law.
As part of the settlement, Coinme will pay $51,700 in restitution to an elderly California resident who claimed to have been defrauded.
“This enforcement action sends a strong message to crypto kiosk operators that California is serious about enforcing rules designed to protect consumers from scams,” said DFPI Commissioner KC Mohseni.
Crypto ATM scams rising
Scammers often deceive victims into buying cryptocurrency at ATMs and sending the funds directly to the fraudsters’ wallets, according to the California Department of Financial Protection and Innovation (DFPI).
To combat these growing threats, California enacted the Digital Financial Assets Law in 2023, aiming to regulate crypto kiosk operators and enhance consumer protection.
The urgency of these measures is underscored by recent data from the FBI, which reported nearly 11,000 complaints and more than $246 million in losses linked to crypto ATM scams in 2024—a 31% increase from the previous year. Alarmingly, two-thirds of those affected were seniors over the age of 60.
Crypto ATMs banned in Washington
Spokane, Washington’s second-largest city, took a more aggressive stance last week by banning crypto ATMs altogether. The move aims to protect residents from scams and money laundering, with local police stating that funds deposited at these kiosks were being funneled to countries such as China, North Korea, and Russia.
Australian Crypto ATM Crackdown
Meanwhile, Australian federal police announced on Wednesday that they had reached out to over 90 individuals as part of a nationwide crackdown on the criminal use of crypto ATMs. The operation targeted both scam victims—including those caught in “pig butchering” schemes—and suspected perpetrators.
In the U.S., a dramatic incident unfolded in Texas last week when a county sheriff used a power-cutting tool to disable a local crypto kiosk after a family allegedly lost $25,000 to a scam.
