Ohio leads $2.5M multistate settlement with crypto kiosk operator Coinme
The Ohio Department of Commerce Division of Financial Institutions and 33 other state financial regulatory agencies have reached a $2.5 million settlement with Coinme Inc. (NMLS ID 1185542). The settlement with the Seattle-based cryptocurrency money transmitter and kiosk operator is in response to violations of Bank Secrecy Act (BSA) and anti-money laundering (AML) laws that safeguard the financial system from illicit use.
Under the terms of the settlement, Coinme has agreed to terminate its virtual currency kiosk operations by Jan. 1, 2027, or face an additional $4 million penalty. The kiosks, previously located at 130 sites throughout the state, allowed consumers to purchase cryptocurrency, but have now been removed from service. The settlement amount will be allocated among participating states based on transaction volume. Ohio led negotiations and accounted for approximately 6% of the transactions, thus receiving a total of $229,554.08 in penalties that will go to the state’s general revenue fund.
In addition, Coinme has agreed to hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program and submit a report to the states within six months. Coinme will have 12 months to correct any deficiencies found in the review after the report is filed.
“Reaching this settlement reinforces our commitment to maintaining a safe, transparent and compliant financial marketplace for consumers and businesses across Ohio,” Division Interim Superintendent Ingrid White said. “As cryptocurrency activity continues to evolve, we remain focused on ensuring that all transmitters meet the standards required to operate responsibly.”
Ohioans with any questions or who think they may have been a victim of a scam can contact the Division’s Office of Consumer Affairs at web.dfi@com.ohio.gov or 614‑728‑8400. Residents can also visit NMLS Consumer Access to verify that a company is licensed to do business in Ohio and to view past enforcement actions.
Alaska, Arkansas, Georgia, Illinois, North Carolina, and Washington assisted Ohio in leading the enforcement effort.