California Regulator Orders Crypto ATM Operator CoinFlip to Pay Over $4.8 Million to Scam Victims

Nov. 9 — The California Department of Financial Protection and Innovation (DFPI) has ordered major crypto ATM operator CoinFlip to pay more than $4.8 million in compensation to California scam victims, plus over $350,000 for excess fees it illegally charged. The investigation found that since 2021, CoinFlip failed to effectively verify user identities and to detect and prevent suspicious transactions, allowing scammers to use its roughly 500 ATMs (mainly located in supermarkets, gas stations and similar locations) to carry out fraud, particularly targeting the elderly. The company also committed multiple violations, including accepting transactions of more than $1,000 in a single day, charging excessive fees, and failing to provide required disclosures.