Seattle-based cryptocurrency ATM operator Coinme has agreed to pay a $300,000 fine to California regulators for violating the state’s digital financial assets laws. The California Department of Financial Protection and Innovation (DFPI) found that Coinme allowed customers to exceed the state’s $1,000 daily transaction limit and failed to provide mandatory disclosures on receipts at its kiosks, which are located across grocery and convenience stores throughout California.
This marks the DFPI’s first enforcement action under California’s 2023 Digital Financial Assets Law, designed to enhance consumer protections around crypto kiosks amid rising scams involving these machines. Additionally, Coinme will pay $51,700 in restitution to a senior citizen victim who lost money in a related fraud scheme.
Regulatory Warning Amid Rising Crypto ATM Scams
DFPI Commissioner KC Mohseni emphasized that the penalty sends a strong message to digital asset operators that consumer protection and regulatory compliance are top priorities. Crypto ATM scams have surged, with fraudsters often manipulating victims into purchasing digital assets and sending them directly to criminal wallets.
The FBI reported nearly 11,000 complaints involving crypto ATM scams in 2024 alone, resulting in losses exceeding $246 million—a 31% increase over the previous year. Seniors aged 60 and above make up the majority of victims, highlighting the urgent need for tighter regulation.
Global Concern: Australia’s Crypto ATM Romance Scam Crackdown
Similar enforcement efforts are underway internationally. In Australia, federal police recently reached out to over 90 individuals as part of a crackdown on crypto ATM misuse in scams like “pig butchering” and romance fraud.
One particularly tragic case involved a 77-year-old widow who lost approximately 433,000 Australian dollars (~$281,947 USD) after being deceived for over two years by an online fraudster posing as a Belgian investor. The scammer coached her through operating Bitcoin ATMs and transferring her life savings, often requiring cash withdrawals from traditional ATMs to fund crypto transactions.
AUSTRAC, Australia’s financial intelligence agency, highlighted that many targeted users were actually victims unknowingly entangled in sophisticated criminal schemes. Out of 21 individuals investigated, only one was charged with property laundering, while others faced cautions related to drug purchases or acting as intermediaries, with some suspects themselves being exploited victims.
US Local Action: Crypto ATM Ban in Spokane, Washington
In the United States, rising fraud concerns have led Spokane, Washington, to become the first city in the state to ban crypto ATMs altogether, especially to protect vulnerable low-income communities from increasing scams.
As regulators worldwide tighten oversight of cryptocurrency ATMs, these actions underscore the growing need for consumer safeguards and awareness amid the evolving digital asset landscape.
June 2025, Cryptoniteuae