DFPI Orders Coinme to Refund $175,000 to California Consumers

CA DFPI Press Releases

Filed February 17th, 2026

Detected March 14th, 2026

Summary

The California Department of Financial Protection and Innovation (DFPI) has ordered crypto kiosk company Coinme to refund $175,000 to consumers for violating the state's Digital Financial Assets Law. This action follows a previous order where Coinme was fined $300,000 and ordered to pay $51,700 in restitution.

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What changed

The California Department of Financial Protection and Innovation (DFPI) has issued a consent order requiring Coinme, a cryptocurrency kiosk operator, to refund an additional $175,000 to California consumers. This enforcement action stems from violations of the California Digital Financial Assets Law (DFAL), specifically charging fees and markups above statutory maximums and omitting key information on customer receipts. This order builds upon a previous action on June 25, 2025, where Coinme was fined $300,000 and ordered to pay $51,700 in restitution for similar violations.

This action serves as a strong notice to digital asset companies operating in California that compliance with DFAL is mandatory. Regulated entities, particularly crypto kiosk operators, must ensure their fee structures and receipt disclosures adhere to state law to avoid further penalties. While no new compliance deadline is specified for this particular refund order, the previous actions highlight the potential for significant financial penalties and restitution requirements for non-compliance.

What to do next

Review fee structures and receipt disclosures for compliance with California's Digital Financial Assets Law
Ensure all customer transactions and receipts meet statutory requirements, including customer names and exchange sources

Penalties

$175,000 in consumer refunds ordered, in addition to a previous $300,000 penalty and $51,700 in restitution.

Source document (simplified)

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February 17, 2026 What You Need to Know: After violating California’s Digital Financial Assets Law, California orders Crypto kiosk company to refund $175,000 to consumers.

SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) today announced that it has ordered Coinme, one of the largest crypto kiosk operators in the state, to refund an additional $175,000 to California consumers who were unlawfully overcharged.

This enforcement action and money back to consumers builds upon DFPI’s efforts to protect consumers and hold companies accountable.

“When a company overcharges consumers, we will do everything we can to help people get their money back,” said DFPI Commissioner KC Mohseni. “This action should put digital asset companies on notice that they are expected to follow our rules and the law.”

Many companies operate crypto kiosks in California, typically located in grocery and convenience stores, where customers can insert cash to buy and sell digital financial assets such as Bitcoin. The transactions are often instant and non-refundable. With the goal of protecting consumers, the DFPI makes it a priority to ensure that crypto kiosk operators comply with the California Digital Financial Law (DFAL).

A DFPI examination of Coinme, a Seattle-based company, led to the discovery that it had committed the following violations in California:

Charging consumers fees and markups well above the statutory maximums.
Omitting key information on more than 4,050 receipts, including customer names and exchange sources. On June 25, 2025, DFPI ordered the company to pay $51,700 in restitution to California residents, as part of a $300,000 penalty, for violating DFAL’s transaction‑limit and disclosure requirements.

The DFPI encourages consumers using crypto kiosks to remain vigilant, understand applicable fees, and be on alert for scams involving requests for cryptocurrency payments.

About DFPI

The Department of Financial Protection and Innovation protects consumers, regulates financial services, and fosters responsible innovation. DFPI protects consumers by establishing and enforcing financial regulations that promote transparency and accountability. We empower all Californians to access a fair and equitable financial marketplace through education and by helping to prevent potential risks, fraud, and abuse. Learn more at dfpi.ca.gov.