Over $4.8 Million in Restitution! California Orders Coinflip to Compensate Bitcoin ATM Scam Victims

Odaily reports: On November 4, the California Department of Financial Protection and Innovation (DFPI) ordered cryptocurrency ATM operator Coinflip to pay over $4.8 million in restitution to local scam victims and to pay regulators over $350,000 in illegally collected excess fees. The order covers approximately 500 devices operated by the company in California and requires it to cease its unlawful practices.

Investigations found that since 2021, Coinflip failed to adequately identify users and failed to effectively detect, prevent, report, and mitigate suspicious activity. The relevant transactions also exceeded California's $1,000 daily customer limit, and there were issues such as failing to provide written disclosures before purchases and incomplete receipt information.

The DFPI stated that scammers impersonate trusted institutions, falsely claim there are problems with accounts or computers, and induce victims to withdraw cash and transfer funds through nearby ATMs; the cryptocurrency victims purchase by scanning QR codes is transferred to the scammers' wallets. Regulators noted that elderly people are particularly vulnerable to such scams. (Bitcoin.com News)