Coinme, a crypto ATM operator based in Seattle, has agreed to pay a $300,000 fine for violating California's rules governing daily transaction limits for crypto kiosks.

A law passed in 2023 in California limits crypto ATM transactions to a maximum of $1,000 per customer per day. According to the California Department of Financial Protection and Innovation (DFPI), Coinme exceeded this limit and also failed to include mandatory information on receipts issued to customers at its kiosks located in grocery stores and convenience shops across the state.

This marks the first enforcement action under the state’s new Digital Financial Assets Law.

In addition to the fine, Coinme will also pay $51,700 in restitution to a senior citizen from California who claimed to have been defrauded. DFPI officials stated this case sends a strong message to crypto kiosk operators that the state is serious about enforcing rules designed to protect unsuspecting residents from scams.

Growing Concern Over Crypto ATM Scams

Authorities have raised concerns over the rising number of scams involving crypto ATMs, where victims are tricked into depositing funds into kiosks and transferring them directly to scammer-controlled wallets. The 2023 Digital Financial Assets Law was designed to tackle such risks by introducing regulations for kiosk operators.

According to FBI data, nearly 11,000 complaints involving crypto ATMs were filed in 2024, with reported losses exceeding $246 million—an increase of 31% from the previous year. Seniors aged 60 and older were among the most frequently targeted victims.

Bans and Raids in Other Regions

While California is tightening regulations, Spokane, the second-largest city in Washington, has gone a step further by banning crypto ATMs altogether. The move aims to shield citizens from scams and money laundering. Local law enforcement reports that funds from these kiosks have been traced to destinations like China, North Korea, and Russia.

Meanwhile, in Australia, federal police launched a crackdown on illegal use of crypto ATMs, contacting over 90 individuals—including both scam victims and suspected offenders.

In a dramatic case in Texas, a county sheriff personally intervened and brought a power-cutting tool to a crypto kiosk after a family reportedly lost $25,000 to fraud.



#Cryptoscam , #CryptoATM , #DigitalAssets , #BitcoinATM , #CryptoNewss

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