California Department of Financial Protection and Innovation: Orders Coinflip to Compensate Victims of Bitcoin ATM Scams The California Department of Financial Protection and Innovation (DFPI) has ordered cryptocurrency ATM operator Coinflip to pay over $4.8 million in restitution to local scam victims and an additional $350,000 in penalties for illegally collected excess fees. The order applies to approximately 500 devices operated by Coinflip in California and requires the company to cease its unlawful practices. Investigations found that since 2021, Coinflip failed to adequately identify users and did not effectively detect, prevent, report, or mitigate suspicious activity. Transactions also exceeded California’s daily $1,000 customer limit, and there were instances of inadequate written disclosures prior to purchase and incomplete receipt information. The DFPI stated that scammers impersonate trusted organizations, falsely claim issues with victims’ accounts or computers, and诱导 victims to withdraw cash and transfer funds via nearby ATMs; the cryptocurrency purchased by victims scanning QR codes is sent directly to the scammers’ wallets. Regulators noted that elderly individuals are particularly vulnerable to such scams.