The crypto operator Coinme has become the first subject of a regulatory action in California, facing a fine of $300,000 for violations related to crypto ATMs. This decision marks the application of the new Digital Financial Assets Law.
Coinme's Fine and Violations
The California Department of Financial Protection and Innovation (DFPI) announced a fine against Coinme for violating the $1,000 transaction limit per customer. This rule was implemented to combat fraud associated with crypto ATMs. In addition, Coinme failed to provide mandatory information on customer receipts at kiosks located in convenience stores and supermarkets across California.
Government Response
As part of a consent order with the DFPI, Coinme agreed to pay the $300,000 fine, which includes $51,700 in restitution to a senior citizen who reportedly fell victim to a crypto scam. The department noted that scammers often manipulate victims, particularly seniors, into purchasing cryptocurrency from kiosks and transferring funds to fraudulent wallets.
Increase in Crypto ATM Scams
Enacted in 2023, the Digital Financial Assets Law was designed to respond to the growing issue of consumer fraud. DFPI emphasized the need for stricter compliance as complaints about crypto ATM scams continue to rise. According to the FBI, in April 2025, nearly 11,000 complaints about such scams were reported, leading to losses exceeding $246 million.
The Coinme case highlights the need for oversight of crypto kiosks and the overall rise in cryptocurrency-related fraud, particularly among older consumers. Authorities continue to take actions to protect consumers from such schemes.
