CoinFlip Ordered to Pay Over $4.8 Million to California Fraud Victims

The California Department of Financial Protection and Innovation (DFPI) has ordered cryptocurrency ATM operator CoinFlip to pay over $4.8 million in restitution to victims of fraud in California, along with more than $350,000 in illegal excess fees. Investigations revealed that since 2021, CoinFlip has failed to effectively verify user identities and detect and prevent suspicious transactions, allowing scammers to exploit its approximately 500 ATMs to commit fraud, primarily targeting the elderly. The company has also been found in violation of multiple regulations, including accepting transactions over $1,000 in a single day, charging excessive fees, and failing to provide necessary disclosures.

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