Popular Bitcoin company faces 10-year ban

The fourth quarter of 2025 has been tumultuous for the crypto industry, to say the least.

The total crypto market cap has crashed from $4.28 trillion in early October to $3.15 trillion at press time. Bitcoin (BTC), which surpassed the $126,000 price mark to reach a new record high nearly two months ago, is struggling to stay afloat the $90,000 mark.

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Crypto rout deepens as enforcement pressures rise

The downturn has pushed several well-known firms like DappRadar to shut down. The largest stablecoin issuer Tether, one of the most profitable crypto companies, also decided to wind down Bitcoin mining operations in Uruguay due to rising energy costs.

Not only that, several crypto companies are also facing strict legal action in the wake of rising scams.

Huione Pay, a Cambodia-based company that gained notoriety for allegedly facilitating money laundering, recently announced a temporary shutdown after a bank run.

The founder of Tokenize Xchange, a crypto exchange, is facing a lawsuit over users losing millions of dollars.

Now, another case has emerged - and this time it targets one of the United States’ longest-running Bitcoin on-ramp providers.

Coinme is a U.S.-based crypto fintech that lets users buy, sell, and access Bitcoin through thousands of physical kiosks. The company partners with retailers like Coinstar and MoneyGram to make crypto easily accessible nationwide. It focuses on compliance-first, regulated infrastructure aimed at onboarding everyday users into digital assets.

Washington state moves to revoke Coinme license

The Washington State Department of Financial Institutions (DFI) has issued sweeping Statements of Charges against Coinme, Inc. and its CEO Neil Bergquist, alleging years of unfair and deceptive practices under the state’s Uniform Money Services Act.

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According to the Nov. 25 filing, Coinme “inappropriately” claimed customers’ unredeemed Bitcoin vouchers as company income between January 2023 and December 2024, recording $2.2 million in unused balances as revenue in 2023 and $6.17 million in 2024. 

Regulators say the company failed to disclose the practice or escheat the funds to the state as required.

DFI also alleges Coinme repeatedly failed to maintain required tangible net worth, filed inaccurate annual and quarterly reports, and provided customers with receipts listing an inactive support number.

Regulators now intend to revoke Coinme’s money transmitter license and bar both Coinme and Bergquist from the money-services industry for 10 years, while ordering restitution or escheatment for all affected customers. 

A $300,000 civil fine, investigation fees and ongoing recordkeeping requirements are also proposed. 

Coinme has the right to contest the charges at an administrative hearing.

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