California’s Department of Financial Protection and Innovation announced on Nov. 4 that it had ordered crypto ATM operator Coinflip to pay more than $4.8 million in full compensation to California scam victims. The order also requires Coinflip to pay the regulator over $350,000 in fees it charged illegally. The source does not say the payments have been made.
The regulator said Coinflip had failed since 2021 to adequately identify users and address suspicious activity, enabling scammers to exploit customers. Its findings included transactions above California’s $1,000 daily customer limit, missing written disclosures before purchases and incomplete receipts. The order also directs Coinflip to stop unlawful, unfair, deceptive or abusive practices.
