California Hits Bitcoin ATM Operator Coinhub with $675,000 Fine for Breaking Consumer Protection Laws
California fined Bitcoin ATM operator Coinhub $675,000 for violating consumer protection laws, including exceeding cash transaction limits.Summary
The California Department of Financial Protection and Innovation (DFPI) fined Nevada-based Coinhub (LSGT Services, LLC) $675,000 on October 30, 2025, for multiple violations of California's Digital Financial Assets Law (DFAL) that took effect in 2025. Coinhub's violations included allowing customers, many over 60, to exceed the $1,000 daily cash transaction limit—with some exceeding $10,000—charging excessive fees, and failing to provide proper transaction warnings and complete receipts. DFPI Commissioner KC Mohseni stated the action warns bad actors that California will not tolerate non-compliance. Coinhub must pay the fine and restitution within 60 days and submit compliance reports for a year. This action is part of a growing statewide crackdown, following fines against Coinme, as regulators address the use of crypto ATMs in scams, which saw victim losses reach $246.7 million in 2024.
(Source：Brave New Coin)