Coinme, a Seattle-based crypto ATM operator, has agreed to pay a $300,000 penalty for infractions involving transactions in California.
Coinme Fined
According to a law enacted last year, transactions at crypto ATMs in California are capped at $1,000 per customer per day. Coinme also failed to provide required disclosures on customer receipts.
The California Department of Financial Protection and Innovation (DFPI) issued a $300,000 penalty, of which $51,700 will go to an elderly California resident who reported being scammed.
Increase in Crypto ATM Scams
The DFPI states that scammers often trick victims into buying crypto assets at ATMs and transferring funds directly to fraudsters' wallets. In 2024, the FBI reported nearly 11,000 complaints and losses exceeding $246 million related to crypto ATM scams, a 31% increase from 2023.
Crypto ATMs Banned in Washington
Spokane, Washington's second-largest city, has taken a step further by banning crypto ATMs last week. This measure aims to protect citizens from scams and money laundering, as local police claim that funds deposited into crypto kiosks often end up in countries like China, North Korea, and Russia.
Recent regulatory actions against fraud and compliance suggest that the rules for crypto ATM operators are becoming increasingly stringent.
