The New York Attorney General found that Coin Cafe's misleading fee structure was still in effect even after the company obtained a BitLicense from the Department of Financial Services.
Cryptocurrency trading platform Coin Cafe will pay $4.3 million in restitution to customers who were charged high fees after signing up for a "free" crypto custody service. The firm instituted fees for its wallet service in September 2020, but never informed customers. They also increased the fees four times without informing their users. At one point, they charged 7.99% of the account balance or $99, whichever was greater, per month if a user did not transact that month. This resulted in some investors being charged fees equal to 96% of their holdings. One investor was charged more than $51,000 in fees in 13 months; another was charged $10,000 in a single month.