California regulators order Bitcoin ATM operator Coinflip to pay over $4.8 million to scam victims

California’s Department of Financial Protection and Innovation ordered bitcoin ATM operator Coinflip to pay more than $4.8 million in full restitution to Golden State fraud victims and over $350,000 in penalties for excess fees. The regulator found that since 2021 Coinflip failed to adequately perform customer identity verification and suspicious-transaction monitoring, with some trades exceeding California’s $1,000-per-customer daily limit, and also cited missing pre-trade disclosures and incomplete receipts. The enforcement covers roughly 500 crypto ATMs Coinflip operates in California and requires the company to halt the unlawful and unfair business practices. The action matters as a state-level test of compliance standards for cash-to-crypto kiosks, a channel widely used by less digitally savvy users and frequently targeted by scammers. What to watch next is whether Coinflip tightens ID checks and transaction caps across its national fleet and whether other states adopt similar restitution-focused enforcement.