California Recovers Over $4.8 Million for Scam Victims of Major Crypto ATM Company CoinFlip
The agency said CoinFlip failed to detect suspicious activity and charged excessive fees, forcing full restitution and a stop to unlawful practices.
- On Thursday, California's Department of Financial Protection and Innovation ordered CoinFlip to pay over $4.8 million to victims after the company failed to adequately protect customers from financial fraud at its ATMs.
- Because transactions are immediate and irreversible, crypto ATMs have become prime tools for fraudsters; CoinFlip operates about 500 kiosks across California, typically in grocery stores and gas stations.
- DFPI investigations found CoinFlip violated laws by accepting more than $1,000 daily from kiosk customers, charging excessive fees, and failing to provide required pre-transaction disclosures to consumers.
- California Business and Consumer Services Secretary Rohit Chopra stated the action ensures technology "helps people, rather than driving up prices or opening the doors to fraud." Chopra previously led the federal Consumer Financial Protection Bureau.
- Additionally, California ordered CoinFlip to pay over $350,000 in excessive fees it illegally charged consumers. The company, which calls itself the "world's largest network of cryptocurrency ATMs by transaction volume," did not immediately respond to requests for comment.
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California Recovers Over $4.8 Million for Scam Victims of Major Crypto ATM Company CoinFlip
SACRAMENTO – California’s Department of Financial Protection and Innovation (DFPI) ordered CoinFlip, one of the state’s largest cryptocurrency ATM companies, to pay over $4.8 million to California victims after failing to adequately protect them from financial fraud — a significant enforcement action that secures full compensation for the victims. California also ordered CoinFlip to pay […] The post California Recovers Over $4.8 Million for Scam…
The California financial regulator (DFPI) ordered Coinflip, one of the largest bitcoin ATM operators in the United States, to pay more than $4.8 million to scam victims who lost their money on their machines. According to the regulator, since 2021 the company did not identify their customers well or slow down suspicious activity. [...] The California entry forces Coinflip to pay $4.8 million to scam victims in bitcoin ATMs: this is how the trap …
California's financial regulator ordered CoinFlip to return at least $4,811,483 to 20 scam victims and return $351,530 in commissions, as well as requiring operational changes under supervision.
Coinflip will have to pay more than $4.8 million to the victims of ATM bitcoins in California, announced on November 4th the DFPI. The authority will also be responsible for more than $350,000 of commissions. Key points The order requires Coinflip to pay more than $5 million in total. Inspectors challenge shortcomings in customer verification [...]
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