DFPI Shuts Down Crypto Kiosk Operator for Cheating Consumers and Violating State Laws

What You Need to Know: After violating California’s Digital Financial Assets Law, California shuts down a crypto kiosk company’s operations.

SACRAMENTO – In an ongoing effort to protect California consumers, the Department of Financial Protection and Innovation (DFPI) has announced that Anh Management, LLC, known as Hermes Bitcoin, must cease operating all of its digital financial asset kiosks (a/k/a ‘Bitcoin ATMs’) in California by May 20, 2026. The move comes after the company, which operates 42 kiosks in Southern California, charged customers more than the allowable fees and committed other violations of California’s Digital Financial Assets Law (DFAL).

The settlement agreement between the parties also prohibits Hermes Bitcoin from engaging in any digital financial asset business activity in California. This action is part of DFPI’s ongoing efforts to deter fraud and safeguard consumers’ interests as it regulates the crypto industry to ensure that digital financial asset companies follow the law.

“Shutting down this company’s digital financial asset operations reinforces our efforts to protect consumers who are scammed and defrauded through the use of Bitcoin ATMs and other digital assets. As the world’s 4th largest economy, California embraces innovators and legitimate actors in the crypto space, including those who help prevent fraud, adhere to our laws, and make efforts to safeguard consumers. Nonetheless, we will not hesitate to pursue actions against those who defraud Californians and flout our laws,” said DFPI Commissioner KC Mohseni. “We are committed to removing bad actors from the marketplace who put consumers at risk.”

A DFPI investigation found that since January 1, 2024, Hermes engaged in multiple violations of state and federal law, including:

• Accepting more than $1,000 in cash for a customer in a single day, violating transaction limits.
• Charging excessive fees for transactions.
• Failing to provide required pre‑transaction disclosures to consumers.
• Issuing receipts without the required information.
• Implementing an ineffective Bank Secrecy Act/Anti-Money Laundering compliance program, demonstrated by a substantial pattern of failing to collect and verify critical customer identification information, including customer names.

These actions violate the California Consumer Financial Protection Law (CCFPL), DFAL, and federal anti-money laundering laws.

Today’s announcement builds on several recent enforcement actions against crypto kiosk operators that have violated the law. These include, but are not limited to:

• RockItCoin: The Chicago-based kiosk operator company was ordered to pay $202,000 in restitution to California consumers and a $75,000 penalty.
• Coinme, Inc: The Seattle-based firm was fined $300,000 for violations of DFAL, including $51,700 in restitution to California consumers.
• LSGT Services, LLC (Coinhub): Was fined $675,000 in penalties, including $105,000 in restitution to California consumers.

Today’s action against Hermes resolves the violations outlined in the DFPI’s Enforcement order in September 2025.

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.