Washington authorities have moved in opposition to a serious Bitcoin ATM supplier, ordering a full coinme reimbursement plan as a part of a broader enforcement motion.
Washington DFI orders Coinme to halt companies and repay $8 million
The Washington state Division of Monetary Establishments (DFI) has ordered Coinme to cease all cash transmission actions and return greater than $8 million to prospects. The regulator issued a Non permanent Stop and Desist Order on December 1, 2025, alleging the Seattle-based Bitcoin ATM agency wrongfully handled sure buyer funds as firm income.
In keeping with the order, Coinme required customers to buy paper vouchers at its kiosks after which redeem them on-line. Nonetheless, when some vouchers remained unredeemed past a set timeframe, the corporate allegedly transformed the unused balances into company earnings. Regulators say this follow violated Washington’s Uniform Cash Companies Act and undermined protections for customers who depend on licensed cash transmitters.
“Washington’s cash transmission legal guidelines exist to guard shoppers that depend on licensed firms to soundly transmit funds,” DFI Director Charlie Clark mentioned in an announcement. Furthermore, the DFI emphasised that licensed entities should safeguard buyer funds till they’re redeemed or lawfully escheated.
Regulators query Coinme’s monetary situation and disclosures
The DFI order additionally alleges that from 2020 by way of 2025, Coinme failed to keep up the tangible internet value required below state legislation. As well as, the corporate is accused of submitting inaccurate stories with regulators and never clearly disclosing redemption deadlines to customers buying vouchers at kiosks.
These alleged compliance failures compound the issues over how unredeemed balances had been dealt with. That mentioned, the case additionally highlights broader regulatory scrutiny going through cryptocurrency service suppliers that function as cash transmitters and provide cash-to-crypto companies by way of automated kiosks.
The deal with Coinme’s remedy of unredeemed vouchers might affect how different companies construction comparable merchandise. Nonetheless, the DFI’s motion stays preliminary till the executive course of is full, and the corporate has a chance to contest the findings.
Potential license revocation, fines, and trade ban
Because of the enforcement motion, Coinme now faces the potential revocation of its Washington state cash transmitter license. The DFI can be looking for a $300,000 civil penalty and a possible 10-year trade ban overlaying each the corporate and its CEO, Neil Bergquist.
If the order is upheld, the mixture of restitution, fines, and potential long-term prohibitions would mark one of many extra extreme outcomes in opposition to a U.S. cryptocurrency kiosk operator. Furthermore, such a choice may set a precedent for the way state regulators reply when companies deal with unclaimed buyer balances as earnings with out clear authorized authority.
The Coinme reimbursement obligations outlined within the order are tied on to allegedly unredeemed vouchers that had been transformed to income. Nonetheless, the precise variety of affected customers and the distribution timeline for funds haven’t but been detailed in public paperwork.
Firm response and subsequent steps within the case
Coinme has 20 days from the date of the December 1, 2025 order to request an administrative listening to earlier than the motion turns into closing. Throughout this era, the corporate can problem the DFI’s factual findings, authorized conclusions, and proposed penalties.
In an preliminary public assertion, Coinme Chief Compliance Officer Ben Enea mentioned the agency is cooperating with regulators. Nonetheless, he supplied few specifics on how the corporate plans to deal with the required buyer repayments or handle the allegations concerning unredeemed voucher practices and reporting deficiencies.
The result of the Washington DFI’s case can be intently watched by different crypto ATM operators and cash service companies. Finally, the continuing will decide whether or not Coinme can retain its license within the state and the way tens of 1000’s of {dollars} in unclaimed voucher balances have to be handled going ahead.
In abstract, Washington regulators have taken aggressive motion in opposition to Coinme over unredeemed voucher balances, alleged internet value shortfalls, and disclosure failures, with the case now transferring right into a high-stakes administrative course of.