Coinme hits $300,000 fine in California’s first DFAL law enforcement lawsuit

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

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

California cracks down on Coinme

Coinme, which operates crypto kiosks in California’s grocery and convenience stores, found it violated DFAL’s daily transaction restrictions by allowing customers to exchange or withdraw more than $1,000 a day. The DFPI investigation also showed that Coinme failed to provide the required disclosure on its customer receipt.

Under the terms of the consent order, Coinme has agreed to pay a $300,000 fine, including $51,700 in damages to an elderly California resident affected by the violation.

According to an official DFPI press release, the company will also take compliance measures to prevent future violations.

DFPI Specialist KC Mohseni said in a statement

“This enforcement action should send a strong message to kiosk operators that California requires digital asset companies to follow the rules to prevent scammers from exploiting unsuspecting Californians.”

Crypto booth scams surge

According to a report in September last year, fraud losses related to cryptocurrency kiosks soared nearly tenfold between 2020 and 2023. The FBI recorded $247 million in kiosk-related losses in 2024. It noted a 99% increase in complaints in the previous year. Both agencies warn that the scams have caused disproportionate harm to older Americans, and the FTC revealed that scams are more than three times more likely to be reported by young people through cryptocurrency kiosks.

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

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