Crypto Kiosk Operator Settles State Regulator Charges for Excessive Fees
A digital financial asset kiosk operator settled California Department of Financial Protection and Innovation ("DFPI") charges for fee overcharges and failures to provide compliant transaction receipts.
According to the Consent Order, the operator "processed over 22,600 digital financial asset transactions through [its] kiosks" in California. The DFPI determined that on several occasions the operator charged California customers fees exceeding allowable limits, resulting in approximately $174,874.28 in aggregate overcharges. The operator represented that it has since corrected this issue.
The DFPI also found that the operator's kiosks printed 4,050 transaction receipts that did not include the name of the customer.
The DFPI determined that the operator violated California Financial Code Sections 3904 ("Digital Financial Asset Transaction Kiosks") and 3905(b)(1) ("Digital Financial Asset Transaction Kiosks").
To settle these charges, the operator agreed to (i) a cease-and-desist order, (ii) restitution of $174,874.28 to affected consumers, and (iii) a $1,000,000 administrative penalty that becomes due if the operator fails to comply with the Consent Order.