State issues cease-and-desist order to Seattle-based cryptocurrency exchange
The company linked to multiple bitcoin ATMs in Whatcom County has been issued a temporary cease-and-desist order by the Washington State Department of Financial Institutions (DFI).
The Seattle-based company Coinme allegedly claimed more than $8 million owed to customers as its own income and violated the Uniform Money Services Act. The company’s cryptocurrency can be accessed at kiosks like Coinstar and ReadyCode ATM, which are located in Whatcom County grocery stores, including Bellingham, Ferndale, Lynden and Blaine sites.
Customers can use the kiosks to purchase paper vouchers to be redeemed as cryptocurrency on Coinme’s website or mobile app, according to DFI. Between January 2023 and December 2024, Coinme allegedly claimed the amounts owed to consumers as its own if they didn’t redeem the vouchers within a certain timeframe.
Coinme did not disclose information about the timeframe to customers, according to documents related to the Consumer Services Division case, and failed to return unclaimed property to the state as required by law.
Charges from DFI also allege that from 2020-2025, Coinme failed to maintain the legally required tangible net worth and records showing certain other requirements were met, filed inaccurate reports with DFI and failed to timely report information to DFI.
“Washington’s money transmission laws exist to protect consumers that rely on licensed companies to safely transmit funds,” DFI Director Charlie Clark said. “When our investigations reveal serious violations, we will take appropriate action.”
DFI intends to order Coinme to pay restitution to Washington State consumers, pay a fine and have its money transmitter license revoked.
Ben Enea, chief compliance and consumer protection officer at Coinme, told The Herald the company was not aware of DFI’s concerns until Monday’s announcement. He said that customers can still redeem their vouchers online or in the app without an expiration date, and the company has “always honored, and will continue to honor, every voucher ever purchased.”
“We take our regulatory obligations seriously and are working constructively with the Washington State DFI to resolve their concerns,” Enea said. “Our customers’ purchased vouchers remain secure, and our commitment and ability to honor every purchase remains unwavering.”
Editor’s note (Dec. 2, 2025): This article has been updated to clarify Coinme’s relationship with companies that operate cryptocurrency kiosks.
This story was originally published December 1, 2025 at 12:32 PM.