Seattle-based crypto ATM provider Coinme has been hit with a $300,000 penalty for breaching California’s daily crypto transaction limits and failing to comply with disclosure rules at its kiosks, marking the state’s first regulatory action under its new Digital Financial Assets Law.
The California Department of Financial Protection and Innovation (DFPI) announced the enforcement decision, citing Coinme’s violation of the $1,000-per-day transaction cap per customer—a limit imposed by the state last year to curb fraud through crypto ATMs. Coinme also neglected to include mandatory information on customer receipts at kiosks across convenience stores and supermarkets in California.
As part of a consent order with the DFPI, Coinme agreed to the penalty, which includes $51,700 in restitution to a senior citizen who reportedly fell victim to a crypto scam. The department said scammers often manipulate victims—many of whom are elderly—into purchasing crypto from kiosks and transferring funds directly to fraudulent wallets.
Enacted in 2023, the Digital Financial Assets Law was designed to tighten oversight of digital currency kiosks in response to growing consumer fraud. The DFPI emphasized the need for stricter compliance amid increasing complaints about crypto ATM-related scams.
In April 2025, the FBI reported a spike in such scams, with nearly 11,000 complaints and over $246 million in losses so far this year—up 31% from 2023. Alarmingly, around two-thirds of the victims were seniors aged 60 and above.
The crackdown isn’t isolated to California. Just last week, the city of Spokane, Washington, banned crypto ATMs altogether, citing a surge in scams and illicit activity. Local law enforcement claimed funds deposited into kiosks were being funneled to countries like North Korea, Russia, and China.
Australia is also ramping up efforts, with federal police contacting more than 90 individuals in an investigation targeting criminal activity via crypto ATMs. In Texas, authorities made headlines when a sheriff physically dismantled a kiosk after a family reported losing $25,000 to a scam.
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