The post Washington Shuts Crypto ATM Firm After $8M Mystery Emerges appeared on BitcoinEthereumNews.com.

Washington state regulators have ordered CoinMe to halt all money-transfer activity after accusing the crypto ATM operator of treating more than $8 million in customer funds as its own revenue.  The Department of Financial Institutions (DFI) issued an emergency cease-and-desist order on December 1, citing “unsafe and unsound practices.” Regulator Flags Misuse of Customer Money DFI said CoinMe failed to safeguard money that consumers paid for crypto vouchers. Instead, the company allegedly counted unclaimed or expired voucher balances as income. Sponsored Sponsored According to the filing, customers bought vouchers at CoinMe kiosks but never redeemed them. Washington law requires companies to hold those funds as consumer property or turn them over as unclaimed assets. However, DFI says CoinMe treated the balances as corporate revenue. The regulator argues this harmed consumers and distorted the company’s financial condition. Because of these findings, DFI ordered CoinMe to stop all money-transfer and kiosk-related operations in the state. The company cannot accept new funds from Washington consumers under the order. Officials also said they will seek restitution for affected customers. The agency signaled plans to revoke CoinMe’s state money-transmitter license. The cease-and-desist order lists several other violations. These include failing to maintain required net worth, keeping inaccurate records, and submitting incorrect filings. DFI also noted that some CoinMe vouchers displayed a support phone number that no longer worked. The regulator said this contributed to poor consumer protection. A Significant Blow to a Major Cash-to-Crypto ATM Network This action marks one of the most serious state enforcement moves against a US crypto ATM operator. CoinMe operates one of the largest cash-to-crypto networks in the country. The case highlights growing scrutiny of crypto on-ramps that handle physical cash. Regulators expect these companies to follow the same standards as traditional money-transmitters. CoinMe can contest the order, but Washington…

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Filed under: News - @ December 1, 2025 10:28 pm