Connecticut Suspends Crypto Kiosk Operator's License Amid Regulatory Fines

The Connecticut Department of Banking has taken swift action against a virtual currency kiosk operator, summarily suspending its license and issuing a temporary cease and desist order.

According to the department's findings, the operator had been charging excessive transaction fees, exceeding the state-mandated 15 percent cap. This resulted in the collection of improper fees from over 500 consumers across more than 1,000 transactions between October 2024 and July 2025.

The investigation also revealed that the operator failed to maintain the minimum tangible net worth required under state law from 2022 to 2025, further highlighting concerns about the company's financial stability. Additionally, the department found evidence of consumer scams facilitated by the kiosks, with affected consumers reportedly losing tens of thousands of dollars.

The order also cites the operator's failure to comply with Connecticut laws requiring full refunds for new customers who report fraudulent transactions. Furthermore, the department noted that the operator failed to implement adequate anti-money laundering and know-your-customer controls, allowed transactions exceeding daily statutory limits, and did not provide mandatory disclosures, warnings, or receipts.