The California Department of Financial Protection and Innovation (DFPI) has ordered crypto ATM operator CoinFlip to pay over $4.8 million in compensation to scam victims in the state, plus more than $350,000 for illegally charged excess fees. An investigation revealed that since 2021, CoinFlip failed to effectively verify user identities or detect suspicious transactions across its network of approximately 500 ATMs located primarily in supermarkets and gas stations. The regulatory body found that these lapses allowed scammers to exploit the machines to commit fraud, with elderly users particularly targeted. CoinFlip was also cited for multiple other violations, including processing transactions exceeding $1,000 in a single day, charging excessive fees, and failing to provide required disclosures to consumers.