Bitcoin News

Story: California Fines Bitcoin ATM Operator Coinhub $675K for Violating Digital Asset Laws

By MikeT

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DFPI Cracks Down on Non-Compliant Crypto ATM Operators. According to DFPI Commissioner KC Mohseni, the agency intends to hold crypto businesses…

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Fourth Enforcement Action Highlights Regulator’s Intent. The DFPI has intensified its oversight of crypto ATM operators amid rising reports of consumer…

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Nationwide Scrutiny of Crypto ATMs. Regulatory pressure on crypto ATMs isn’t limited to California.

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The Bigger Picture. California’s latest fine against Coinhub reinforces regulators’ growing concern over unregulated…

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California’s Department of Financial Protection and Innovation (DFPI) has fined Bitcoin ATM operator Coinhub $675,000 for violating state digital asset regulations — a move that…

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The penalty includes $105,000 in restitution to California consumers who were overcharged during cryptocurrency transactions.

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“Crypto kiosk operators in California are on notice that we intend to root out bad actors and scammers who put consumers’ hard-earned money at risk,” Mohseni said.

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An investigation revealed that LSGT Services, LLC, operating as Coinhub, violated several aspects of the Digital Financial Assets Law (DFAL) since 2024.

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In June 2025, the agency fined Coinme—another Bitcoin ATM operator—$300,000, with $51,700 allocated for customer restitution.

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The DFPI’s enforcement activity signals a clear warning to companies that fail to meet consumer protection and anti-fraud obligations.

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Regulatory pressure on crypto ATMs isn’t limited to California. Other jurisdictions have also taken similar steps to mitigate financial crime and fraud.

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In Spokane, Washington, city officials voted unanimously to ban Bitcoin ATMs earlier this year, citing the devices’ link to scams and illicit transactions.

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Meanwhile, law enforcement agencies continue to warn consumers about scams involving Bitcoin ATMs.

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The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) and the FBI have also raised red flags.

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California’s latest fine against Coinhub reinforces regulators’ growing concern over unregulated crypto services that expose consumers to financial risks.

The Currency Analytics

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