Business ProfileforCoinme Inc.

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On January 25, 2023, the State of North Carolina, Wake County, in a Matter Before the Commissioner of Banks, Docket No 23:002:MT in regard to Coinme Inc, NMLS ID 1185542 issued an Order Summary Suspension and Cease and Desist Order and Order Amending Summary Suspension and Cease and Desist Order.  The effective date of the Order was amended to February 1, 2023.

Coinme is the subject of a multi-state examination that began in August of 2022. The examination remains open.

According to the Order, Coinme’s volume as reported on its 2022 third quarter Money Service Business Call Report filed through the Nationwide Multistate Licensing System (NMLS) included 5,067 customer virtual currency transactions totaling the US Dollar equivalent of $2,774,083. Pursuant to N.C.G.S. § 53-208.46(a), licensed money transmitters shall maintain at all times a net worth of not less than $250,000 calculated in accordance with generally accepted accounting principles. Upon reviewing the financial documents provided during the examination, NCCOB determined that Coinme has not maintained at all times sufficient net worth. Net worth as of August 31, 2022, was below the minimum required amount. On October 5, 2022, NCCOB requested that Coinme provide documentation to review its capital growth and show compliance with N.C.G.S. § 53- 208.46(a). Coinme indicated that its net worth would be more than $250,000 by on or about October 31, 2022; however, it reported significant losses during the month of September.  On October 20, 2022, Coinme provided NCCOB with an unaudited balance sheet and profit and loss statement that indicated its net worth was more than $250,000 as of September 30, 2022. On December 16, 2022, Coinme provided NCCOB with an updated unaudited balance sheet and profit and loss statement that indicated its net worth was significantly below $250,000 during the month of October 2022. Pursuant to N.C.G.S. § 53-208.57(d), the Commissioner may issue a cease and desist or summary suspension order if she has reason to believe that such a violation or failure to comply with the MTA presents an imminent threat to the public. 1Coinme’s inability to continually maintain sufficient net worth puts North Carolina consumers at risk.

As a result of the Order, pursuant to N.C.G.S. §§ 53-208.46(a) and 53-208.57(d), the money transmitter license of Coinme, previously issued, is hereby SUMMARILY SUSPENDED. Coinme shall cease and desist from conducting any money transmission activity within the State of North Carolina. Coinme is permitted, for a period of six (6) months from the effective date of this Order, to engage in limited money transmission activities solely for the purpose of winding down its North Carolina operations and resolving its consumer obligations received prior to the effective date of this order.

As of the effective date of this Order, no new money transmission activities or new transmission business shall be conducted under Coinme’s MTA license within the State of North Carolina. Within ten (10) days of the effective date of the Order and each successive month end, Coinme shall furnish a list of all its North Carolina consumers with outstanding transmission obligations and the dollar amount of those obligations to Chief Deputy Commissioner of Banks Stephanie White via secure electronic transmission method. Within six (6) months of the effective date of this Order, Coinme shall cease all its money transmission operations and sell or transfer its money transmission activity to another North Carolina licensed money transmitter. With written approval from the Commissioner, Coinme may be granted an extension for ceasing operations. Any request for an extension must be submitted in writing to Chief Deputy Commissioner of Banks Stephanie White before the deadline provided in the preceding paragraph. Pursuant to N.C.G.S. § 53-208.57(b), Coinme may request a hearing regarding the issuance of this Order within twenty (20) days of its effective date. Such a request shall be made in writing to Angela Maynard at and a hearing shall be calendared within fifteen (15) days thereafter or at such time as may be agreed upon by the parties. If Respondent does not request a hearing, this Order shall remain in full force and effect until such time as it is modified or vacated by the Commissioner.

For more information, please contact the State of North Carolina Office of the Commissioner on Banks at https://nccob.nc.gov/ or  919-733-3016.