North Dakota joins $2.5M settlement with cryptocurrency kiosk operator
BISMARCK, N.D. – The North Dakota Department of Financial Institutions (NDDFI) and 33 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. North Dakota will receive $10,000.
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.
“The penalties and corrective plan underscore the importance of our licensed entities complying with state and federal requirements,” said NDDFI Commissioner Lise Kruse. “Participating in these types of multi-state regulatory efforts illustrates the important role NDDFI plays in protecting the rights of North Dakota residents.”
North Dakota residents who have questions about the enforcement action should contact NDDFI Deputy Jan Murtha at jjkmurtha@nd.gov or call the NDDFI at 701-328-9933. Residents can also visit NMLS Consumer Access to verify that a company is licensed to do business in North Dakota, and they may also view past enforcement actions.
“We appreciate the work of Alaska, Arkansas, Georgia, Illinois, North Carolina, Ohio and Washington in leading the enforcement effort,” Kruse said.
To protect consumers and enforce safety and soundness requirements, state regulators regularly coordinate supervision of multistate firms and, when necessary, initiate enforcement actions. This networked coordination supports consistency and collaboration, while preserving the authority of individual states to take direct action.
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