IDFPR Joins $2.5 Million Settlement with Crypto Kiosk Operator

IDFPR Joins $2.5 Million Settlement with Crypto Kiosk Operator

CHICAGO - The Illinois Department of Financial and Professional Regulation and thirty-three other state financial regulatory agencies have reached a $2.5 million settlement with Coinme Inc. (NMLS ID 1185542), a Seattle-based cryptocurrency money transmitter and kiosk operator, for 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 settlement amount will be allocated among participating states based on transaction volume.

"Enforcement actions are an important part of protecting consumers and maintaining confidence in our financial system, particularly as new financial products and technologies continue to emerge," said IDFPR Secretary Mario Treto, Jr. "Through our continued collaboration with state and federal regulatory partners, IDFPR is working to ensure innovation in financial services does not come at the expense of consumer safety."

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.

"Ensuring that money transmitters comply with financial laws, like the Bank Secrecy Act, is vital to protecting both the financial system and Illinois consumers," said IDFPR Director of Financial Institutions Francisco Menchaca. "This settlement reinforces that those obligations apply across the financial services landscape, regardless of the technology or business model involved."