Payments
Washington sends cease-and-desist order to CoinMe
December 3, 2025
The Washington State Department of Financial Institutions sent a cease-and-desist order to the bitcoin ATM operator CoinMe for allegedly claiming $8 million of funds owned to customers as its own income. CoinMe allegedly would claim customer vouchers as its income if customers didn't redeem them quickly enough, according to a report by Bellingham Herald.
When using the machines, customers receive paper vouchers to redeem on CoinMe's website or app for cryptocurrency. However, the department claims that CoinMe didn't disclose to customers that there was a time limit to redeem the vouchers. The DFI also states that CoinMe didn't maintain tangible net worth records.
DFI wants to order CoinMe to pay a fine and restitution to customers impacted by this policy.
"Washington's money transmission laws exist to protect consumers that rely on licensed companies to safely transmit funds," Charlie Clark, director of DFI, said in the report. "When our investigations reveal serious violations, we will take appropriate action."
Ben Enea, chief compliance and consumer protection officer at CoinMe said that "we take our regulatory obligations seriously and are working constructively with the Washington State DFI to resolve their concerns."
