California’s Department of Financial Protection and Innovation (DFPI) has ordered Hermes Bitcoin to shut down all 42 of its digital asset kiosks across Southern California and permanently banned the company from operating any digital financial asset business in the state.
The reason: more than 14,120 instances of missing or improper receipts and disclosures since January 1, 2024, fees that exceeded the legal maximum, and anti-money laundering failures.
What Hermes Bitcoin actually did wrong
The company behind the kiosks, Anh Management, LLC, doing business as Hermes Bitcoin, ran afoul of California’s Digital Financial Assets Law (DFAL) in nearly every way possible.
Since January 1, 2025, Hermes Bitcoin processed 3,006 transactions that violated state regulations. Going back to January 1, 2024, regulators documented over 14,120 separate instances where the company failed to provide proper receipts or pre-transaction disclosures to customers.
