Washington orders Bitcoin ATM giant Coinme to refund $8 million, cease operations

2025-12-04 12:34:49

The Washington State Department of Financial Institutions ((DFI)) has ordered Coinme—the Bitcoin ATM operator—to halt all money transmission activities and refund more than $8 million to customers. The regulator alleges that Coinme unlawfully converted funds from unredeemed vouchers into revenue, violating the Money Services Act. Coinme is accused of requiring customers to purchase paper vouchers at kiosks and redeem them online, but when the vouchers expired, the company recorded the unredeemed balances as income.

DFI also stated that from 2020–2025, Coinme failed to maintain the required net worth, submitted inaccurate reports, and did not clearly disclose voucher redemption deadlines. The company risks having its license revoked, facing a $300,000 fine, and being banned from operating for 10 years for both the business and CEO Neil Bergquist. Coinme has 20 days to request a hearing and says it is cooperating with regulators.

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