TL;DR
- Washington regulators have ordered Coinme to repay $8 million, halting all its money transmission activities.
- The Department of Financial Institutions questions the company’s financial condition and disclosure practices.
- Coinme now faces potential license revocation, fines, and a 10-year industry ban, while the case highlights broader regulatory scrutiny over Bitcoin ATM operators in the United States.
Washington authorities have taken action against Coinme, a leading Bitcoin ATM provider, demanding the repayment of $8 million and the suspension of its operations in the state. The move comes as regulators raise questions about the company’s handling of customer funds and financial reporting practices.
Washington Enforcement Action Targets Coinme Repayment
The Washington State Department of Financial Institutions (DFI) issued a Temporary Cease and Desist Order on December 1, 2025. The regulator claims Coinme converted unredeemed voucher balances into corporate revenue, allegedly violating the Uniform Money Services Act. Customers who purchased paper vouchers at Coinme kiosks and failed to redeem them within a set period reportedly saw their funds treated as company income.
DFI Director Charlie Clark emphasized that licensed money transmitters must protect customer funds until redemption or proper escheatment. The agency notes that these protections are essential for users relying on cryptocurrency service providers to safely handle their assets.
Financial Condition And Disclosure Concerns Raise Questions
The DFI order also highlights alleged financial shortcomings, stating that Coinme did not maintain the required tangible net worth from 2020 through 2025. Inaccurate regulatory filings and unclear communication of voucher redemption deadlines further compound the case. Analysts note that while these issues are framed as regulatory compliance failures, they may reflect broader challenges in adapting traditional money transmission rules to crypto services.
Coinme’s treatment of unredeemed vouchers could influence how other operators structure cash-to-crypto services in the future. Although the DFI’s action is preliminary, it signals heightened oversight for Bitcoin ATM providers across the country.
Company Response And Potential Industry Implications
Coinme faces not only the $8 million repayment but also a $300,000 civil penalty and a possible 10-year ban affecting both the company and CEO Neil Bergquist. The firm has 20 days to request an administrative hearing, giving it an opportunity to contest the findings.
Coinme Chief Compliance Officer Ben Enea stated that the company is cooperating with regulators but offered limited details on repayment plans or corrective measures. Industry observers are closely monitoring the case, noting that the outcome could shape how U.S. states regulate Bitcoin ATM operators and handle unclaimed voucher balances.
