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Wu said that the California Department of Financial Protection and Innovation (DFPI) officially announced that the crypto ATM operator Hermes Bitcoin has been ordered to shut down all 42 cryptocurrency ATMs operating in Southern California by May 20 due to violations of regulations such as overcharging customers and violating anti-money laundering laws. The settlement agreement also explicitly prohibits the operator from engaging in any digital asset business in California in the future. DFPI stated that it will continue to crack down harshly on crypto service providers that defraud consumers and flout state regulations, ensuring compliant operation of the digital asset market.