Coinme Hit With $300,000 Penalty in California’s First DFAL Enforcement Action

The California Department of Financial Protection and Innovation (DFPI) announced today that it has entered into a consent order with Seattle-based Coinme, Inc.

This marks the first enforcement action under the state’s Digital Financial Assets Law (DFAL).

California Cracks Down on Coinme

Coinme, which operates crypto kiosks in grocery and convenience stores across California, was found to have violated DFAL’s daily transaction limit by allowing customers to exchange or withdraw more than $1,000 per day. The DFPI investigation also revealed that Coinme failed to provide required disclosures on customer receipts.

Under the terms of the consent order, Coinme has agreed to pay a $300,000 penalty, including $51,700 in restitution to an elderly California resident impacted by the violations.

According to the official press release by DFPI, the company will also implement compliance measures to prevent future infractions.

In a statement, DFPI Commissioner KC Mohseni said

“This enforcement action should send a strong message to kiosk operators that California means business when it requires digital asset companies to follow the rules that help prevent scammers from taking advantage of unsuspecting Californians.”

Crypto Kiosk Scams Surge

Fraud losses linked to crypto kiosks surged nearly tenfold between 2020 and 2023, as per the FTC’s report last September. The FBI recorded $247 million in kiosk-related losses in 2024. It noted a 99% rise in complaints from the previous year. Both agencies warn that these scams have disproportionately harmed older Americans, with the FTC revealing that those aged 60 and above were over three times more likely than younger adults to report a loss through a crypto kiosk.

In response, California enacted the DFAL in 2023 to regulate kiosk operators and reduce these risks.

Other states taking action include Illinois. In early June, the lawmakers of the state sent a bill to Gov. JB Pritzker, who had advocated for such measures earlier this year. Vermont also enacted regulations in May that set daily transaction limits on crypto kiosks to curb victim losses, while Nebraska implemented a law in March requiring crypto ATM operators to obtain licenses.