Bitcoin ATM operator Coinme ordered to refund customers over $8 million

Washington state regulators 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, in violation of money transmission regulations.

The Washington State Department of Financial Institutions (DFI) stated in a temporary cease-and-desist order and a statement of charges that Coinme's cryptocurrency voucher system violated the state's Uniform Money Services Act. Between January 2023 and December 2024, Coinme allegedly treated $8.37 million in unredeemed customer vouchers as company revenue. Regulators are seeking to revoke Coinme's money transmission license, impose a $300,000 fine plus a $375 investigation fee on the company, and prohibit the company and its CEO Neil Bergquist from engaging in any money transmission business for ten years. Coinme has 20 days to request a hearing, or the temporary cease-and-desist order will automatically become permanent.