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California regulator fines Coinhub $675K for overcharging
November 4, 2025
The California Department of Financial Protection and Innovation has fined Coinhub $675,000 for charging markup fees above the maximum amount on bitcoin ATMs. This fine includes $105,000 as restitution to customers, according to a report by Yahoo! Finance.
The regulator found that LSGT Services, which operates as Coinhub, accepted cash transactions above the $1,000 limit and charged fees above the maximum amount allowed. The regulator has targeted other bitcoin ATM operators such for similar violations such as Coinme, which had to pay $300,000 in June 2025.
"Crypto kiosk operators in California are on notice that we intend to root out bad actors and scammers who put consumers' hard-earned money at risk," DFPI Commissioner KC Mohseni said in a statement. "We welcome legitimate operators in this industry, however, DFPI will not tolerate those who flout the law and fail to implement required safeguards for customers."
Recently, the AG of Washington, D.C. sued Athena Bitcoin for allegedly overcharging customers with fees and not protecting scam victims.
