Company Overview
How the Coinme Voucher System Works
Unlike direct-settlement Bitcoin ATMs that deliver cryptocurrency during the same visit, Coinme uses a multi-step voucher system that requires customers to complete the transaction online after leaving the kiosk.
- Visit a Coinstar kiosk at a participating grocery store (Safeway, Albertsons, Kroger, etc.)
- Select cryptocurrency purchase on the Coinstar touchscreen and insert cash bills
- Receive a paper voucher printed on the receipt with a redemption code
- Go home and open a web browser or download the Coinme mobile app
- Create a Coinme account (if you don't already have one)
- Complete identity verification (KYC) with photo ID and personal information
- Enter the voucher code to claim the cryptocurrency purchase
- Wait for delivery of the cryptocurrency to your designated wallet
The process splits a single transaction into two phases: a cash deposit at the kiosk and a separate online redemption. If a customer loses the paper voucher, fails to create an account, or doesn't complete the online steps, their cash remains with Coinme indefinitely.
Coinme vs. Direct-Settlement Bitcoin ATMs
| Feature | Coinme Voucher Kiosk | Direct-Settlement Bitcoin ATM |
|---|---|---|
| Settlement | Delayed (hours to days) | Immediate (minutes) |
| Steps required | 7-8 steps across kiosk + online | 3-4 steps at one machine |
| Internet required | Yes (for redemption) | No (machine handles it) |
| Account required | Yes (online account + KYC) | Varies by operator and amount |
| Custody of funds | Operator holds cash until redemption | No custody gap |
| Hardware | Coinstar coin-counting kiosk | Purpose-built Bitcoin ATM |
| Sell (cash out) | Not available at kiosk | Available on two-way models |
Regulatory History
SEC UpToken Settlement (May 2023)
SEC Enforcement Action
In April 2023, the U.S. Securities and Exchange Commission settled charges against Coinme, its subsidiary Up Global SEZC, and CEO Neil Bergquist for conducting an unregistered securities offering through "UpToken," a cryptocurrency token. The SEC found that the entities raised approximately $3.5 million from investors between October and December 2017 without registering the securities as required by federal law. The SEC also cited an internal email from Bergquist telling potential investors that $4 million had been raised—when only $2.7 million had been collected—to create "Fear of Missing Out."
Penalties ($3.92 million total):
- Up Global SEZC (subsidiary): $3.52 million (disgorgement, prejudgment interest, and civil penalty)
- Coinme, Inc.: $250,000 civil penalty
- Neil Bergquist (CEO): $150,000 civil penalty plus 3-year bar from serving as officer or director of any public company
California DFPI Consent Order (June 2025)
California DFPI Enforcement Action
In June 2025, the California Department of Financial Protection and Innovation (DFPI) issued a consent order against Coinme—the first enforcement action under California's Digital Financial Assets Law (DFAL). State examiners found that Coinme had accepted transactions exceeding the $1,000-per-customer-per-day limit, issued over 4,050 receipts missing required disclosures (customer names and exchange source), and exceeded statutory fee maximums.
Penalties and restitution:
- $300,000 administrative fine
- $51,700 in restitution to California residents
- Must implement compliance measures and submit periodic reporting to DFPI
In a related action, the DFPI ordered Coinme to pay $175,000 in additional restitution to California consumers for overcharging, plus $50,000 in restitution to a Bay Area consumer who was defrauded at a Coinme kiosk.
Washington State DFI Cease-and-Desist (December 2025)
Washington DFI Enforcement Action
In December 2025, the Washington State Department of Financial Institutions (DFI) issued a cease-and-desist order against Coinme after examiners found approximately $8.37 million in unredeemed customer vouchers that the company had booked as revenue rather than customer liabilities—$2.2 million from Washington customers in 2023 and $6.17 million from mixed Washington and non-Washington customers in 2024.
When customers insert cash at Coinstar kiosks and receive vouchers but never redeem them online, those funds represent customer liabilities under money transmitter law. Washington regulators found Coinme was treating these unredeemed funds as company income.
Additional violations cited:
- Failed to maintain legally required tangible net worth (2020–2025)
- Filed inaccurate reports with the DFI
- Listed an inactive consumer support phone number on vouchers
- Failed to disclose voucher redemption timeframe to consumers
- Failed to return unclaimed customer property to Washington State as required by law
Penalties and orders sought:
- $300,000 administrative fine
- 10-year ban for Coinme and CEO Neil Bergquist from the money services industry
- Money transmitter license revocation
- Restitution to Washington consumers (amount to be determined)
Coinme resumed operations on December 30, 2025 after submitting financial records to the DFI under a temporary consent order. The license revocation case remains open.
This enforcement action is directly connected to the voucher model's custody structure. Because customers deposit cash at the kiosk but complete redemption separately online, the operator holds customer funds during the gap. If vouchers go unredeemed, those funds accumulate on the operator's balance sheet.
Polygon Labs Acquisition
Pending Acquisition
In late 2025, Polygon Labs (the development company behind the Polygon blockchain) announced the acquisition of Coinme for a reported $250 million or more. The acquisition was expected to close in Q2 2026. The Washington State DFI enforcement action remains unresolved as of this writing and may affect the acquisition timeline.
Zero Hash LLC and "CINQ by Coinstar"
California DFPI registration data lists Zero Hash LLC as one of the largest kiosk operators in the state by location count (~1,248 locations). Zero Hash is a cryptocurrency infrastructure company—not an ATM operator—that provides the settlement layer for a newer voucher product called "CINQ by Coinstar."
From the consumer's perspective, the CINQ experience is similar to Coinme: insert cash at a Coinstar kiosk, receive a voucher, and complete the cryptocurrency purchase online. Zero Hash processes the cryptocurrency settlement when the customer redeems the voucher through their platform.
Like Coinme, CINQ/Zero Hash kiosks do not appear in our Bitcoin ATM directory because they use the same voucher-based model with delayed settlement.
Why Coinme Kiosks Are Not in Our Directory
BitcoinATM.news lists only direct-settlement Bitcoin ATMs—machines that convert cash to cryptocurrency and deliver it to the customer's wallet during the same visit. Coinme's voucher kiosks are excluded because:
- They don't deliver cryptocurrency at the machine
- They require a separate online process to complete the transaction
- They use shared Coinstar hardware, not purpose-built Bitcoin ATM equipment
- The voucher model creates a custody gap that introduces risks absent from direct-settlement machines
We track Coinme and Zero Hash registration data from the California DFPI and other regulatory sources for analysis purposes, but these locations are excluded from our public map and location pages.
For a detailed comparison of voucher systems and direct-settlement Bitcoin ATMs, see our editorial analysis: Voucher Kiosks Are Not Bitcoin ATMs: Why Direct Settlement Matters.