News Desk · Enforcement

34 state financial regulators reach $2.5 million BSA/AML settlement with crypto kiosk operator Coinme

State financial regulators say Coinme Inc. has agreed to pay $2.5 million and to end its virtual currency kiosk operations by 1 January 2027, or face an additional $4 million penalty.

EnforcementUS8 Oct 20262 min read

On 8 October 2026, the Conference of State Bank Supervisors (CSBS) announced that 34 state financial regulatory agencies had reached a $2.5 million settlement with Coinme Inc. (NMLS ID 1185542). According to CSBS, Coinme is a Seattle-based cryptocurrency money transmitter and kiosk operator, and the settlement is for violations of Bank Secrecy Act (BSA) and anti-money laundering (AML) laws. A crypto kiosk, often called a crypto ATM, is a machine where people can buy cryptocurrency, usually with cash.

Under the settlement, Coinme agreed to end its virtual currency kiosk operations by 1 January 2027, or face an additional $4 million penalty. Coinme also agreed to hire an independent consultant to review how complete and effective its BSA/AML program is, and to submit a report to the states within six months. Coinme will then have 12 months after the report is filed to correct any deficiencies the review finds.

Alaska, Arkansas, Georgia, Illinois, North Carolina, Ohio and Washington led the enforcement effort. The Arkansas Securities Department said the $2.5 million is divided among the participating states based on transaction volume, with Arkansas receiving $48,977.93. The Georgia Department of Banking and Finance said it entered its consent order with Coinme on 7 October 2026, and that Coinme may continue to offer other money transmission services to Georgia residents.

Why it matters to AML professionals

State regulators can act together against a money transmitter licensed in many states, and they can require a firm to exit a product line, not only pay a penalty. Crypto kiosks are a known channel for scam payments, so AML professionals at money transmitters and banks that serve them should expect close attention to kiosk activity. An independent review of a BSA/AML program with a fixed remediation deadline is a common settlement term that compliance teams need to be ready to support.

Red flags in this case

If this landed in your queue

  1. Check the customer's age, transaction history and stated purpose against the size and pattern of the kiosk purchases
  2. Review the destination wallet addresses with blockchain analytics for links to known scam or fraud activity
  3. Look for signs that the customer is being directed by a third party, such as phone contact during the transaction
  4. Escalate and file a suspicious activity report (SAR) where the activity fits scam or structuring patterns

Key terms

Money transmitter
A business licensed to move money for customers, such as a remittance or crypto transfer company; in the US it usually needs a licence in each state where it operates.
Independent consultant
An outside firm hired, often under an enforcement order, to review a company's compliance program and report weaknesses to regulators.
NMLS ID
The unique number given to a licensed company in the Nationwide Multistate Licensing System, used by state regulators to track licences and actions.

Interview angle

What AML risks do crypto kiosks create, and how would you monitor them?

Mention cash entry with limited face-to-face contact, fraud victims being coached to use kiosks, and structuring below limits. Then describe controls: transaction limits, identity checks, blockchain analytics on destination wallets, elder-fraud warnings and SAR escalation.

Sources

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Every fact in AMLift News Desk stories comes from an official source: a regulator, court, government gazette or the company's own filing.