Coinme to Shut Crypto Kiosks in $2.5 Million Settlement

Coinme, a Seattle-based cryptocurrency money transmitter and kiosk operator, will close its kiosk network by Jan. 1, 2027, under a $2.5 million settlement with financial regulators in 34 states. The agreement addresses alleged weaknesses in the company’s anti-money-laundering controls and compliance with the Bank Secrecy Act.

The Conference of State Bank Supervisors announced the settlement Oct. 8. Coinme will face an additional $4 million penalty if it does not complete the shutdown by the deadline.

The company must hire an independent consultant to review its Bank Secrecy Act and anti-money-laundering programs. The consultant must submit a report to the states within six months. Coinme will then have 12 months to correct any deficiencies identified in the report.

Regulators in Alaska, Arkansas, Georgia, Illinois, North Carolina, Ohio and Washington led the multistate examination. They found that Coinme’s kiosk program did not adequately reduce risk and left the network open to criminal abuse.

Coinme operates about 6,000 cryptocurrency kiosks nationwide through a partnership with Coinstar. The machines allow customers to buy and sell digital assets, often using cash. Regulators have identified crypto kiosks as a high-risk channel for fraud and money laundering.

The settlement follows a 2025 case brought by the Washington Department of Financial Institutions. The state alleged that Coinme treated more than $8 million owed to customers through unredeemed paper vouchers as company income. Washington also alleged that the company issued inaccurate receipts and failed to meet certain filing requirements.

Coinme said it “has resolved the multistate examination through a consent order and is carrying out its terms.” The company said it will complete its transition away from kiosk-based services by Jan. 1, 2027.

The consent order is a regulatory settlement, not a criminal finding, and Coinme did not admit the states’ allegations. The company is expected to continue its app-based services and money-transmission business after leaving the physical kiosk market.

The settlement comes amid increased scrutiny of cryptocurrency kiosk operators in the United States. Australia’s financial regulator recently required 96 cryptocurrency ATMs to go offline. Bitcoin Depot entered bankruptcy earlier in 2026 as the kiosk industry faced tighter financial and regulatory conditions.