TechFlow news, December 4 — According to Decrypt, regulators in Washington State have ordered Bitcoin ATM operator Coinme to cease operations and return over $8 million in unclaimed funds to customers, accusing the company of treating unredeemed vouchers as revenue, violating money transmission regulations.
The Washington State Department of Financial Institutions (DFI) stated in a temporary cease-and-desist order and statement of charges that Coinme’s cryptocurrency purchase voucher system violated the state's Uniform Money Services Act. From January 2023 to December 2024, Coinme allegedly recorded $8.37 million in unredeemed customer vouchers as corporate revenue.
Regulators are seeking to revoke Coinme’s money transmission license, impose a $300,000 penalty plus $375 in investigation fees, and bar the company and its CEO Neil Bergquist from participating in related businesses for ten years. Coinme has 20 days to request a hearing; otherwise, the temporary cease-and-desist order will automatically become permanent.
