The Oregon Division of Financial Regulation joined 33 other state financial regulatory agencies in reaching a $2.5 million settlement with Seattle-based Coinme Inc. for violations of federal money-laundering laws that authorities say safeguard the financial system from illicit use.
Under the settlement terms, Coinme has agreed to shut down its virtual currency kiosk operations by January 1, 2027, or face an additional $4 million penalty, the agency said.
The settlement amount will be divided among the participating states based on their transaction volumes. Oregon will receive $101,425.34.
Coinme must also hire an independent consultant to review its anti-money laundering program and submit a report within six months, with a 12-month period to correct any deficiencies identified.
Cryptocurrency kiosks are frequently used in connection with fraud and other criminal activities, the Oregon division noted. "Nobody legitimate, be it the IRS, a utility, a bank, or a sweetheart you've never met, will tell you to feed money into a cryptocurrency kiosk," TK Keen, the division's administrator, said. "If someone does, stop and call local law enforcement."