The Atm operator of Crypto ATM, based in Seattle, agreed to pay a penalty of $ 300,000 for violation of daily transaction limits for automatic ticket distributors in California.
California Caps Crypto ATM Transactions at $ 1,000 per customer per day under a law obtained last year. The company has also not included the disclosure required on customer receipts in its kiosks located in California grocery stores and convenience stores, according to the California financial and innovation department.
It marks the first action for applying the DFPI under the law on digital financial assets of the State.
Under the consent prescription, Coinme agreed to pay the penalty, including $ 51,700 in restitution to an elderly resident in California who claimed to have been scammed.
The action in application should “send a strong message” to cryptographic kiosk operators that the State “means business when it forces digital asset companies to follow the rules that prevent crooks from taking advantage of the Californians without distrust,” said KC Mohseni, DFPI commissioner.
Cointelegraph stretched out the corner for additional comments.
Sociations in Atm Crypto
Scammers encourage victims to buy cryptographic assets from automatic ticket distributors and transfer funds directly to fraudsters, the DFPI said.
The digital law on financial assets was promulgated in 2023 specifically to deal with these risks thanks to regulations of kiosk operators.
In April, the FBI reported that there were nearly 11,000 complaints and more than $ 246 million in losses associated with scams in Atm Crypto in 2024, an increase of 31% compared to 2023. Two -thirds of victims of scam were over 60 years of age.
Crypto ATMS prohibited in Washington
The second city of Washington, Spokane, did things further by prohibiting the automatic distributors of crypto tickets last week.
In relation: The ATM Crypto network shrinks while the United States loses 1,200 machines in days
The measure was imposed to protect citizens against scams and money laundering, local police saying that the funds deposited in cryptographic newspapers ended up “in places like China, North Korea and Russia”.
Aussie Atm Sting
Meanwhile, Australian federal police announced on Wednesday that they have contacted more than 90 citizens as part of a repression of criminal use of automatic crypto tickets, including victims of pig butcher and alleged delinquents.
In Texas, a county sheriff last week brought a power cup tool to a local cryptography kiosk after a family was scammed on $ 25,000.
Review: History suggests that Bitcoin Taps $ 330,000, Crypto ETF ratings hit 90%: Hodler’s Digest
