The post California Hits Bitcoin ATM Operator Coinhub with $675,000 Fine for Breaking Consumer Protection Laws appeared on BitcoinEthereumNews.com.

California regulators have imposed a $675,000 penalty on Coinhub, a major Bitcoin ATM operator, for repeatedly violating state laws designed to protect consumers. The fine includes $105,000 that must be returned to customers who were overcharged at the company’s cryptocurrency kiosks. The California Department of Financial Protection and Innovation (DFPI) announced the enforcement action on October 30, 2025. This marks the fourth time in recent months that California has cracked down on crypto ATM companies for breaking the rules. What Coinhub Did Wrong Nevada-based LSGT Services, LLC, which operates under the name Coinhub, broke multiple California laws starting in January 2024. The company runs Bitcoin ATMs throughout the state that let people exchange cash for cryptocurrency. According to the official consent order, Coinhub committed several violations. The company accepted cash transactions over $1,000 per day from the same customers, even though California law sets a strict $1,000 daily limit. Some transactions exceeded $10,000—more than ten times the legal maximum. Many of these oversized transactions involved customers over 60 years old. Coinhub also charged fees above the legal limit and failed to give customers proper warnings before transactions. The machines didn’t print complete receipts, leaving out required information like the operator’s name and the exchange used to set prices. Source: dfpi.ca.gov “Crypto kiosk operators in California are on notice that we intend to root out bad actors and scammers who put consumers’ hard-earned money at risk,” said DFPI Commissioner KC Mohseni. “We welcome legitimate operators in this industry, however, DFPI will not tolerate those who flout the law and fail to implement required safeguards for customers.” California’s New Crypto ATM Rules California passed the Digital Financial Assets Law (DFAL) in 2023, with enforcement beginning January 1, 2025. The law creates specific rules for crypto ATM operators to protect consumers from fraud…

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Filed under: News - @ November 1, 2025 11:27 pm