$BTC Bitcoin ATM Giant Hit With $300K Penalty

Coinme, a bitcoin ATM operator, has been penalized by California regulators for breaking new digital asset kiosk laws, leading to a consent order that includes restitution, staged financial penalties, and strict compliance requirements.

Following an investigation, the California Department of Financial Protection and Innovation (DFPI) determined that Coinme violated the Digital Financial Assets Law (DFAL) and the California Consumer Financial Protection Law (CCFPL) by permitting customers to transact over the legal $1,000 daily limit and omitting the required exchange name on transaction receipts.

As a result, Coinme must pay $51,700 in restitution to identified California consumers and a $300,000 administrative penalty. Of that penalty, $51,700 is credited as restitution, leaving $248,300 due in three installments: $48,300 within 30 days, $100,000 within 60 days, and another $100,000 within 90 days of the order’s effective date.

Coinme must also implement policy changes, submit compliance reports every 60 days for one year, and has agreed to cease the cited violations. It waived hearing rights and accepted the terms without admitting liability.