Washington State DFI Takes Action Against CoinMe To Halt All Money Transfers in Washington Due to Unsafe and Unsound Practices and Likely Consumer Harm

Olympia – The Washington State Department of Financial Institutions (DFI) issued both a Temporary Order to Cease and Desist (TCD) and a Statement of Charges (Charges) against Seattle, WA-based company, CoinMe, Inc. (CoinMe). The TCD and Charges relate to CoinMe’s money transmission and virtual currency kiosk operations in Washington, and allege the company has committed multiple violations of the Uniform Money Services Act (Chapter 19.230 RCW). 

DFI alleges CoinMe inappropriately claimed more than $8 million owed to consumers as its own income through a system that required consumers to purchase virtual currency paper vouchers at kiosks to be redeemed on CoinMe’s website or mobile application. When consumers did not redeem their purchased vouchers during a specific timeframe, CoinMe claimed the amounts owed to those consumers as income. DFI also asserts that CoinMe did not disclose material information to consumers about the timeframe allowed to redeem vouchers and did not properly return unclaimed consumer property to the State of Washington as required by law. CoinMe also listed an inactive consumer support phone number on the vouchers provided to consumers. 

The Charges also allege that from 2020 to 2025 CoinMe:

• Failed to maintain the legally required tangible net worth, which ensures safe and sound business practices;
• Did not maintain records substantiating that the required level of permissible investment requirements were met;
• Failed to timely report required information to DFI; and
• Filed inaccurate reports with DFI. 

After investigating, DFI determined that the violations outlined in the Charges are likely to cause immediate and irreparable harm to Washington consumers. Based on that determination, DFI also entered the TCD to immediately stop CoinMe’s ongoing operations in Washington to prevent further consumer harm while seeking to revoke the company’s license in Washington.

“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.”

Based on the alleged violations of the Uniform Money Services Act of Washington, the Statement of Charges announces DFI’s intent to order CoinMe to pay restitution to Washington State consumers, CoinMe to pay a fine, and that CoinMe’s money transmitter license be revoked.