Coinme, a Seattle-based startup that sells bitcoin and other cryptocurrencies through kiosks, has been ordered to refund $8.4 million and temporarily halt sales in Washington.

A temporary cease-and-desist order was issued Nov. 25 by the Washington State Department of Financial Institutions after an investigation into Coinme vouchers that customers could buy at kiosks and later redeem for cryptocurrency.

For customers who waited too long to redeem their vouchers on Coinme’s website, Coinme inappropriately recorded the unredeemed funds as its own income, according to an accompanying statement of charges filed by the department. The state also said Coinme misled consumers about its redemption practices, among other violations.

Unredeemed funds for 2023 and 2024 totaled $8,372,076, state do

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