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

on November 9, citing Bitcoin.com News, that the California Department of Financial Protection and Innovation (DFPI) has ordered Bitcoin ATM operator Coinflip to pay over $4.8 million in full restitution to California scam victims, and remit more than $350,000 to the regulator for violations related to unauthorized excess fees.

The investigation found that Coinflip has failed to adequately fulfill obligations such as customer identity verification and suspicious transaction monitoring since 2021, with certain transactions exceeding California's stipulated daily limit of $1,000 per customer, alongside issues including missing pre-transaction disclosures and incomplete receipts.

The regulator also ordered Coinflip to cease its unlawful and unfair business practices. This enforcement action pertains to approximately 500 cryptocurrency ATMs operated by the company in California.