CROWDFUNDINSIDER · 2026-11-09 22:26 UTC

California Department of Financial Protection and Innovation (DFPI) Orders CoinFlip to Repay Crypto ATM Scam Victims

The California DFPI ordered CoinFlip to repay more than $4.8 million in restitution to consumers defrauded through its kiosks, and to remit more than $350,000 in fees that exceeded legal limits. The DFPI found that from 2021 CoinFlip did not adequately verify customer identities or detect and report suspicious activity across its roughly 500 statewide kiosks. The order does not allege CoinFlip orchestrated the frauds; liability rests on failed customer-identification and activity-monitoring controls, and the company must halt the cited practices and certify ongoing compliance.

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