Washington State Drops Hammer On Crypto Company Over Practices
The first licensed cryptocurrency ATM operator in the United States may be out of business in Washington State over allegations they violated the State's Uniform Money Services Act.
They're Accused Of Bilking Residents Out Of $8 Million
The Department of Financial Institutions (DFI) put a Temporary Cease and Desist Order as well as a Statement of Charges against Coinme, who has been operating in Washington State since their inception in 2014.
The State alleges that in the years ending 2023 and 2024, the crypto ATM company made over $8 million from what they claimed were unredeemed vouchers Coinme requires customers to purchase at the kiosks then redeem on their website. When the vouchers aren't cashed in a timely manner, Coinme moves to claim the money as income.
There Is A Problem With That...
The State alleges that Coinme didn't tell Washington residents about that "if you don't claim it we claim it as income" part of the equation. They also accuse the company of not turning the unclaimed property over to the State to hold until the rightful owner is found. But that's not all...
Coinme has also been accused of the old 'give out a fake phone number' scam. Add to it failures to maintain proper records and filing timely and accurate reports. The result is Washington State putting the brakes on their ability to transmit money by revoking their license, while seeking restitution for residents impacted, then hitting them with a big fat fine.
If you weren't aware, Coinme's corporate office is in Seattle and their CEO, Neil Bergquist, is a resident of Washington State so this definitely hits close to home for DFI.
Biggest Red Flags About Living in Washington State
Gallery Credit: Reesha Cosby