Seattle cryptocurrency company Coinme said it reached an agreement with Washington state regulators to pause the temporary cease-and-desist order issued against it last month, clearing the way for the company to resume operations in the state.
The Washington State Department of Financial Institutions had ordered Coinme to stop transmitting money for customers, alleging the startup improperly claimed as its own income more than $8 million owed to consumers from unredeemed crypto vouchers.
Coinme said the order was stayed after it provided detailed financial records and operational information to regulators that clarified key details about its business practices. As a result, the company said, it will be able to “continue serving customers in Washington State while addressing any remaining concerns.”
The state agency had been seeking to revoke Coinme’s money transmitter license, impose a $300,000 fine, and ban CEO Neil Bergquist from the industry for 10 years.
The agreement, laid out in a Dec. 23 consent order, requires Coinme to segregate Washington customer assets into dedicated accounts within 14 days, and move cash or cash equivalents tied to outstanding Washington kiosk transactions into a segregated account within 30 days.
The order also requires the company to provide monthly compliance updates to regulators. The underlying charges remain unresolved and could still be litigated, according to the order.
“Our commitment to customer protection and regulatory compliance remains our top priority,” Bergquist said in a statement, noting that Coinme has had a collaborative relationship with the agency dating back to the company’s founding in 2014.
Coinme operates what it calls the nation’s largest cash-to-crypto network through partnerships with MoneyGram and Coinstar. The company had called the original charges an accounting dispute over a discontinued voucher product.