Banking and Finance Law Daily Wrap Up, ENFORCEMENT ACTIONS—California DFPI shuts down Hermes Bitcoin crypto, ATM kiosk operations, (May 19, 2026)

By A. Bryan Gerepka

This action is part of the agency’s ongoing efforts to deter fraud and safeguard consumers’ interests as it regulates the crypto industry.

The California Department of Financial Protection and Innovation (DFPI) announced May 18 that Anh Management, LLC, known as Hermes Bitcoin, must cease all digital financial operations, including its digital financial asset kiosks (Bitcoin ATMs) in California by May 20, 2026. The DFPI accused the company of overcharging customers and violating California’s Digital Financial Assets Law (DFAL), California’s Consumer Financial Protection Law (CCFPL), and federal anti-money laundering laws.

“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,” said KC Mohseni, DFPI Commissioner. 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.

Background. On September 18, 2025, the DFPI Commissioner issued a Desist and Refrain Order, Claim for Ancillary Relief, and Notice of Intent to Issue an Order Assessing Administrative Penalties against Hermes Bitcoin, following an investigation into the company’s operations. The agency found that since January 1, 2024, Hermes Bitcoin engaged in multiple violations of DFAL (Cal. Fin. Code § 3101 et seq.), CCFPL (Cal. Fin. Code § 90000 et seq.), and federal laws, such as violating transaction limits, charging excessive fees, failing to provide disclosures, implementing an ineffective anti-money laundering compliance program, among other things.

Settlement agreement. The move is part of a settlement agreement reached between the parties in the matter of The Commissioner of Financial Protection and Innovation v. Anh Management, LLC dba Hermes Bitcoin. Under the terms of the settlement agreement, Hermes Bitcoin agreed to cease digital financial operations in California on May 20, 2026, “unless and until obtaining a license from the Commissioner pursuant to Financial Code section 3201 et seq.” Hermes Bitcoin must also pay a $9.9 million penalty under Financial Code section 90012(c), which will become due and payable if the company fails to comply with the agreement. The company agreed that if it fails to comply, the total amount of the penalty will become immediately due and payable within 10 days of receiving a written notice of noncompliance from the Commissioner.

While the settlement agreement resolves the violations outlined in the September 2025 enforcement order, the DFPI reiterated that if Hermes Bitcoin does not honor the terms of the agreement, it will reinstitute all charges.

Companies: Anh Management, LLC, dba Hermes Bitcoin

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