Washington Shuts Down Crypto ATM that Claimed $8 Million in User Funds as Income

Washington's Department of Financial Institutions (DFI) issued an emergency cease-and-desist order against crypto ATM operator CoinMe on December 1, citing "unsafe and unsound practices." The DFI alleges that CoinMe improperly treated over $8 million in customer funds—money paid for crypto vouchers that were never redeemed or expired—as corporate revenue instead of holding them as consumer property or turning them over as unclaimed assets. This action forces CoinMe to stop all money-transfer and kiosk operations in the state and bars them from accepting new funds. The regulator also plans to seek restitution for affected customers and potentially revoke CoinMe's state money-transmitter license due to multiple violations, including inaccurate record-keeping and failing to maintain required net worth. This enforcement action is a significant move against a major US crypto ATM network, highlighting increased regulatory scrutiny on cash-to-crypto on-ramps.

(Source：BeInCrypto)