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{{Short description|Cryptocurrency exchange}}
{{Company
{{Company
| name = Coinme, Inc.
| name = Coinme, Inc.
| logo = File:Coinme logo.svg
| type = Software
| logo_alt = Coinme
| type = [[Privately held company|Private]]
| industry = Software and technology services
| industry = Software and technology services
| founded = 2014
| founded = {{Start date and age|2014}}
| founder = Neil Bergquist and Michael Smyers
| founders = {{Unbulleted list|Neil Bergquist |Michael Smyers}}
| hq_location = Seattle, Washington
| hq_location = [[Seattle, Washington]], US
| key_people = Neil Bergquist, CEO
| key_people = Neil Bergquist (CEO)
| num_employees = 86 (2021)<ref>{{Cite web |url=https://www.ft.com/americas-fastest-growing-companies-2023 |title=FT ranking: The Americas' Fastest-Growing Companies 2023 |date=March 27, 2023 |work=Financial Times}}</ref>
| num_employees = 58
}}
}}


⚫
'''Coinme''' is a [[cryptocurrency exchange]] headquartered in [[Seattle]], Washington. The company offers technology for [[bitcoin ATM]]s and kiosks, which allow users to convert [[cryptocurrency]] into cash. The company launched one of the first licensed bitcoin ATMs in the U.S.
= Coinme =
⚫
Coinme is a financial technology company and U.S. licensed cryptocurrency exchange that develops an [[API]] to enable legacy financial systems, such as [[Automated teller machine|automatic teller machines]] (ATMs) and coin-cashing kiosks to convert [[cryptocurrency]] into cash. The company launched one of the first licensed bitcoin ATMs in the U.S.


== Early History ==
== History ==
In 2013, co-founders Neil Bergquist and Michael Smyers learned about the world’s first successful bitcoin ATM in Vancouver, BC. At the time, Bergquist was running SURF Incubator located in Seattle, WA. After learning of the [[bitcoin]] ATM’s success in Vancouver, Michael, on an impulse, purchased three of the ATM machines from the manufacturer.<ref name=":0">{{Cite web |title=The future of the digital economy — News |url=https://willamette.edu/news/library/2019/02/digital-economy-future.html |access-date=2022-03-27 |website=willamette.edu}}</ref>


The two began working with the Washington State Department of Financial Institutions to revise state finance laws to incorporate cryptocurrency and secure a license to operate a kiosk. The three pilot kiosks were situated in the greater Seattle area. One in Spitfire Grill<ref>{{Cite web |last=Banse |first=Tom |date=2018-10-24 |title=Belltown Bar Back From The Future With A Bitcoin ATM |url=https://kuow.org/stories/belltown-bar-back-future-bitcoin-atm/ |access-date=2022-03-27 |website=kuow.org |language=en}}</ref> in Belltown, another, in Startup Hall at the University of Washington, and the third at Southcenter Mall south of Seattle.<ref name=":0" />
According to co-founders Neil Bergquist and Michael Smyers, after learning about a Canadian [[bitcoin ATM]], they purchased three [[bitcoin ATM]]s from a manufacturer in 2014.<ref name=":0">{{Cite web |title=The future of the digital economy — News |url=https://willamette.edu/news/library/2019/02/digital-economy-future.html |access-date=2022-03-27 |website=willamette.edu}}</ref> The two began working with the [[Washington State Department of Financial Institutions]] to revise state finance laws and secure a license to operate a kiosk.<ref>{{Cite web |date=2018-01-19 |title=Northwest Companies Raise Big Dough With Virtual Currencies Amid Security Warnings |url=https://www.nwpb.org/2018/01/19/northwest-companies-raise-big-dough-with-virtual-currencies-amid-security-warnings/ |access-date=2022-05-07 |website=Northwest Public Broadcasting |language=en-US}}</ref>


Three pilot bitcoin ATM kiosks were situated in the greater Seattle area. One in Spitfire Grill<ref>{{Cite web |last=Banse |first=Tom |date=2018-10-24 |title=Belltown Bar Back From The Future With A Bitcoin ATM |url=https://kuow.org/stories/belltown-bar-back-future-bitcoin-atm/ |access-date=2022-03-27 |website=kuow.org |language=en}}</ref> in Belltown, another in Startup Hall at the University of Washington, and the third at [[Westfield Southcenter|Southcenter Mall]] south of Seattle.<ref name=":0" />
== Bitcoin ATM ==
Coinme was formally established in 2014<ref>{{Cite web |title=Coinme - Crunchbase Company Profile & Funding |url=https://www.crunchbase.com/organization/coinme |access-date=2022-03-27 |website=Crunchbase |language=en}}</ref> with Bergquist as CEO<ref>{{Cite web |title=Neil Bergquist, Coinme, Inc. |url=https://www.bloomberg.com/tosv2.html?vid=&uuid=b0e54948-ae24-11ec-baca-7a4b4a61536d&url=L3Byb2ZpbGUvcGVyc29uLzIxNzM0MTQ1 |access-date=2022-03-27 |website=www.bloomberg.com}}</ref> and Smyers as vice president of engineering.<ref>{{Cite web |title=Michael Smyers - Crunchbase Person Profile |url=https://www.crunchbase.com/person/michael-smyers |access-date=2022-03-27 |website=Crunchbase |language=en}}</ref> They deployed and operated nearly 70 [[Bitcoin ATM]]<nowiki/>s across the Western United States before developing an application programming interface (API) for converting ATMs and kiosks into crypto-exchanging machines.<ref>{{Cite web |date=2021-06-16 |title=Coinme, a Seattle startup that is ‘crypto-enabling’ legacy financial services, raises $10M |url=https://www.geekwire.com/2021/coinme-seattle-startup-crypto-enabling-legacy-financial-services-raises-10m/ |access-date=2022-03-27 |website=GeekWire |language=en-US}}</ref> The company initially built its own ATMs for exchanging bitcoin but found success retrofitting legacy systems for existing ATM networks.


The first state licensed Bitcoin ATM in the United States was installed by Coinme at the Spitfire Grill in Seattle, Washington in the spring of 2014. The company later installed a bitcoin-enabled ATM in the Spokane Valley Mall and became the first licensed company in the state of Washington to offer digital currency through ATMs.<ref>{{Cite web |title=Seattle company installs bitcoin ATM at the Spokane Valley Mall {{!}} The Spokesman-Review |url=https://www.spokesman.com/stories/2018/jun/13/seattle-company-installs-bitcoin-atm-at-the-spokan/ |access-date=2022-03-27 |website=www.spokesman.com}}</ref>
Coinme was formally established in 2014 with Bergquist as CEO<ref>{{Cite web |title=Neil Bergquist, Coinme, Inc. |url=https://www.bloomberg.com/profile/person/21734145 |access-date=2022-03-27 |website=www.bloomberg.com}}</ref> and Smyers as vice president of engineering.<ref name=":0" /> They deployed and operated nearly 70 [[Bitcoin ATM]]s across the Western United States before developing an [[API|application programming interface]] (API) for converting ATMs and kiosks into cryptocurrency exchanging machines.<ref>{{Cite web |date=2021-06-16 |title=Coinme, a Seattle startup that is 'crypto-enabling' legacy financial services, raises $10M |url=https://www.geekwire.com/2021/coinme-seattle-startup-crypto-enabling-legacy-financial-services-raises-10m/ |access-date=2022-03-27 |website=GeekWire |language=en-US}}</ref>


The first state-licensed Bitcoin ATM in the United States was installed by Coinme at the Spitfire Grill in Seattle, Washington in the spring of 2014. The company later installed a bitcoin-enabled ATM in the [[Spokane Valley Mall]] and became the first licensed company in the state of Washington to offer digital currency through ATMs.<ref>{{Cite web |title=Seattle company installs bitcoin ATM at the Spokane Valley Mall {{!}} The Spokesman-Review |url=https://www.spokesman.com/stories/2018/jun/13/seattle-company-installs-bitcoin-atm-at-the-spokan/ |access-date=2022-03-27 |website=www.spokesman.com}}</ref>
⚫
As of June 2021, Coinme employed 58 people and had raised more than $30 million in investment capital. Coinme investors include Xpring, Blockchain.com Ventures, Pantera Capital, Digital Currency Group<ref>{{Cite web |last=Stirling |first=Stephen |title=Coinme raises $10M led by Digital Currency Group |url=https://www.thestreet.com/crypto/bitcoin/digital-currency-group-leads-coinme-10m-fundraise-remitta |access-date=2022-03-27 |website=The Street Crypto: Bitcoin and cryptocurrency news, advice, analysis and more |language=en}}</ref> and MoneyGram International.<ref>{{Cite web |last=Webber |first=Daniel |title=MoneyGram’s Post-Acquisition Plans: CEO Alex Holmes On Digital, Crypto And Beyond |url=https://www.forbes.com/sites/danielwebber/2022/02/28/moneygrams-post-acquisition-plans-ceo-alex-holmes-on-digital-crypto-and-beyond/ |access-date=2022-03-27 |website=Forbes |language=en}}</ref>  At the end of 2021, the company was in the latter stages of completing the necessary filings to operate in all U.S. states as a money transfer license (MTL) holder.<ref>{{Cite web |title=CFO touts controller role as crypto-enabler expands footprint |url=https://www.cfodive.com/news/cfo-touts-controller-role-as-crypto-enabler-expands-footprint/611814/ |access-date=2022-03-27 |website=CFO Dive |language=en-US}}</ref>


Coinme takes a 4 percent transaction fee for every dollar exchanged through its network of ATMs.<ref>{{Cite book |last1=Danial |first1=Kiana |url=https://books.google.com/books?id=ki1TEAAAQBAJ&dq=coinme&pg=PA161 |title=Cryptocurrency All-in-One For Dummies |last2=Laurence |first2=Tiana |last3=Kent |first3=Peter |last4=Bain |first4=Tyler |last5=Solomon |first5=Michael G. |date=2022-01-19 |publisher=John Wiley & Sons |isbn=978-1-119-85580-4 |language=en}}</ref>
⚫
In January 2022 the company named Tom Davis,<ref>{{Cite web |title=Cash-to-Crypto Company Picks Former IBM Exec as First GC |url=https://www.law.com/corpcounsel/2022/01/26/cash-to-crypto-company-picks-former-ibm-exec-as-first-gc/ |access-date=2022-03-27 |website=Corporate Counsel |language=en}}</ref> a former IBM executive and FBI special agent, as its first general counsel. <ref>{{Cite web |date=2022-01-27 |title=Coinme hires former FBI agent to keep up with 'rapidly evolving' regulation |url=https://www.cityam.com/crypto-exchange-coinme-hires-former-fbi-agent-as-first-in-house-lawyer-to-keep-up-with-rapidly-evolving-regulation/ |access-date=2022-03-27 |website=CityAM |language=en-GB}}</ref> In February 2022, Brian Reisbeck joined the company as chief compliance officer.<ref>{{Cite web |last=Lyudvig |first=Anna |date=2022-02-28 |title=ON THE MOVE: Sal Arnuk to Virtu Financial; CalPERS Adds Nicole Musicco |url=https://www.tradersmagazine.com/featured_articles/on-the-move-calpers-adds-nicole-musicco-brian-reisbeck-to-coinme/ |access-date=2022-03-27 |website=Traders Magazine |language=en-US}}</ref> <ref>{{Cite web |title=Coinme names ex-Robinhood exec Brian Reisback as chief compliance officer {{!}} Seeking Alpha |url=https://seekingalpha.com/news/3804509-coinme-names-ex-robinhood-exec-brian-reisback-as-chief-compliance-officer |access-date=2022-03-27 |website=seekingalpha.com |language=en}}</ref>

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By June 2021, Coinme employed 58 people and had raised more than $30 million in investment capital. Coinme investors include Xpring, Blockchain.com Ventures, [[Pantera Capital]], [[Digital Currency Group]] and MoneyGram International.{{cn|date=March 2023}} At the end of 2021, the company was in the latter stages of completing the necessary filings to operate in all U.S. states as a money transfer license (MTL) holder.<ref>{{Cite web |title=CFO touts controller role as crypto-enabler expands footprint |url=https://www.cfodive.com/news/cfo-touts-controller-role-as-crypto-enabler-expands-footprint/611814/ |access-date=2022-03-27 |website=CFO Dive |language=en-US}}</ref>

⚫
In January 2022 the company named Tom Davis, a former IBM executive and FBI special agent, as its first general counsel.<ref>{{Cite web |title=Cash-to-Crypto Company Picks Former IBM Exec as First GC |url=https://www.law.com/corpcounsel/2022/01/26/cash-to-crypto-company-picks-former-ibm-exec-as-first-gc/ |access-date=2022-03-27 |website=Corporate Counsel |language=en}}</ref><ref>{{Cite web |title=US crypto exchange hires former FBI special agent as first general counsel |url=https://www.globallegalpost.com/news/us-crypto-exchange-hires-former-fbi-special-agent-as-first-general-counsel-158948030 |access-date=2022-03-28 |website=www.globallegalpost.com |language=en}}</ref><ref>{{Cite web |date=2022-01-27 |title=Coinme hires former FBI agent to keep up with 'rapidly evolving' regulation |url=https://www.cityam.com/crypto-exchange-coinme-hires-former-fbi-agent-as-first-in-house-lawyer-to-keep-up-with-rapidly-evolving-regulation/ |access-date=2022-03-27 |website=CityAM |language=en-GB}}</ref> In February 2022, Brian Reisbeck joined the company as chief compliance officer.<ref>{{Cite web |last=Lyudvig |first=Anna |date=2022-02-28 |title=ON THE MOVE: Sal Arnuk to Virtu Financial; CalPERS Adds Nicole Musicco |url=https://www.tradersmagazine.com/featured_articles/on-the-move-calpers-adds-nicole-musicco-brian-reisbeck-to-coinme/ |access-date=2022-03-27 |website=Traders Magazine |language=en-US}}</ref>

In 2023, Coinme was fined $4 million by the [[Securities and Exchange Commission (Philippines)|SEC]] for allegedly being involved in unregistered security offerings with UpToken. <ref>{{Cite web |date=May 18, 2023|title=Attorney General James Secures $4.3 Million from Cryptocurrency Company for Defrauding Investors|url=https://ag.ny.gov/press-release/2023/attorney-general-james-secures-43-million-cryptocurrency-company-defrauding|website=New York State Attorney General}}</ref>

Robert Villaseñor joined Coinme in June 2024 as [[chief compliance officer|chief legal and compliance officer]].<ref>{{cite web|url=https://www.law360.com/articles/1851622/crypto-atm-co-coinme-taps-moneygram-atty-as-legal-head|title=Crypto ATM Co. Coinme Taps MoneyGram Atty As Legal Head|website=Law360|date=June 26, 2024|author=Aislinn Keely|access-date=July 15, 2024}}</ref>


== Coinstar ==
== Coinstar ==

⚫
[[Coinstar]] partnered with Coinme in 2019 to enable consumers to purchase bitcoin at existing Coinstar kiosks. Coinme-enabled Coinstar machines expanded to a number of states including Connecticut where more than 90 machines were placed in [[Stop & Shop]] and [[Big Y]] supermarkets.<ref>{{Cite web |last=Stacom |first=Don |title=Coinstar bringing bitcoin buying to grocery stores across Connecticut |url=https://www.courant.com/news/connecticut/hc-news-bitcoin-at-coinstar-20210708-nlrrxz3defg7lditoqfu5gcjle-story.html |access-date=2022-03-27 |website=courant.com}}</ref> Coinstar and Coinme announced in October 2021 that Walmart would be putting 200 of the Coinstar-enabled bitcoin kiosks in its stores.<ref>{{Cite web |date=2022-01-27 |title=Cash is no longer king in the U.S., but will it ever go away? |url=https://www.americanbanker.com/news/cash-is-no-longer-king-in-the-u-s-but-will-it-ever-go-away |access-date=2022-03-27 |website=American Banker |language=en}}</ref> By January of 2022, more than 7,000 Coinme-enabled Coinstar kiosks were operating in 48 U.S. states including Alaska,<ref>{{Cite web |title=Bitcoin-Enabled Coinstar Kiosks Come to Alaska |url=https://progressivegrocer.com/bitcoin-enabled-coinstar-kiosks-come-alaska |access-date=2022-03-27 |website=Progressive Grocer |language=en}}</ref> Pennsylvania,<ref>{{Cite web |last=Napsha |first=Joe |date=2022-01-23 |title=Bitcoin, other cryptocurrencies growing in popularity as ATMs sprout up across Pittsburgh region |url=https://triblive.com/local/westmoreland/bitcoin-other-cryptocurrencies-growing-in-popularity-as-atms-sprout-up-across-pittsburgh-region/ |access-date=2022-03-27 |website=TribLIVE.com |language=en-US}}</ref> North Carolina,<ref>{{Cite web |date=2021-06-15 |title=Bitcoin & groceries: In NC you can now exchange cash for cryptocurrency at some stores {{!}} WRAL TechWire |url=https://wraltechwire.com/2021/06/15/bitcoin-groceries-in-nc-you-can-now-exchange-cash-for-cryptocurrency-at-some-stores/ |access-date=2022-03-27 |website=wraltechwire.com |language=en-US}}</ref> and Florida.<ref>{{Cite web |title=Coinme Launches 300 Bitcoin-Enabled Kiosks in Florida After Securing Financial License |url=https://finance.yahoo.com/news/coinme-launches-300-bitcoin-enabled-155215962.html |access-date=2022-03-27 |website=finance.yahoo.com |language=en-US}}</ref>
[[File:Coinstar Selling Bitcoin (51193275261).jpg|thumb|Coinme enabled Coinstar machine selling Bitcoin]]
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[[Coinstar]], an operator of coin-converting kiosks, signed an agreement with Coinme in 2019 to enable consumers to purchase bitcoin at existing Coinstar machines. Coinme-enabled Coinstar machines expanded to a number of states including Connecticut, where more than 90 machines were placed in [[Stop & Shop]] and [[Big Y]] supermarkets.<ref>{{Cite web |last=Stacom |first=Don |title=Coinstar bringing bitcoin buying to grocery stores across Connecticut |url=https://www.courant.com/news/connecticut/hc-news-bitcoin-at-coinstar-20210708-nlrrxz3defg7lditoqfu5gcjle-story.html |access-date=2022-03-27 |website=courant.com|date=8 July 2021 }}</ref> Coinstar and Coinme announced in October 2021 that Walmart would be putting 200 of the Coinstar-enabled bitcoin kiosks in its stores.<ref>{{Cite web |date=2022-01-27 |title=Cash is no longer king in the U.S., but will it ever go away? |url=https://www.americanbanker.com/news/cash-is-no-longer-king-in-the-u-s-but-will-it-ever-go-away |access-date=2022-03-27 |website=American Banker |language=en}}</ref> By January of 2022, more than 7,000 Coinme-enabled Coinstar kiosks were operating in the United States..<ref>{{Cite web |date=2021-06-15 |title=Bitcoin & groceries: In NC you can now exchange cash for cryptocurrency at some stores {{!}} WRAL TechWire |url=https://wraltechwire.com/2021/06/15/bitcoin-groceries-in-nc-you-can-now-exchange-cash-for-cryptocurrency-at-some-stores/ |access-date=2022-03-27 |website=wraltechwire.com |language=en-US}}</ref>

According to Kent & Bain in ''Bitcoin for Dummies'' (2022), purchases made through Coinme's Coinstar kiosks charge both a 'transaction fee' and a 'cash convenience fee' which combine to add an additional 12% fee to the cost of any bitcoin bought via the service.<ref>{{Cite book |last1=Kent |first1=Peter |url=https://books.google.com/books?id=Nl9iEAAAQBAJ&dq=coinme&pg=PT51 |title=Bitcoin For Dummies |last2=Bain |first2=Tyler |date=2022-03-02 |publisher=John Wiley & Sons |isbn=978-1-119-60214-9 |language=en}}</ref>


== MoneyGram ==
== MoneyGram ==
⚫
Payments and money transfer company [[MoneyGram]] partnered with Coinme in 2021 to allow customers to load cash into, or out of, bitcoin wallets using MoneyGram's mobile payments platform.<ref>{{Cite web |last=Marino |first=Kate |date=2021-08-11 |title=MoneyGram CEO Alex Holmes says the pandemic accelerated digital innovation |url=https://www.axios.com/moneygram-ceo-alex-homes-digital-innovation-pandemic-34d97013-c4bb-4cb7-9234-d26c92cf3d65.html |access-date=2022-03-27 |website=Axios |language=en}}</ref>  As part of the relationship, Coinme users will be able to buy crypto with cash or withdraw it from select MoneyGram retail locations in the U.S.<ref>{{Cite web |last=Browne |first=Ryan |date=2021-05-12 |title=MoneyGram to let cryptocurrency holders cash in their investments |url=https://www.cnbc.com/2021/05/12/moneygram-to-let-cryptocurrency-traders-cash-in-their-investments.html |access-date=2022-03-27 |website=CNBC |language=en}}</ref>


⚫
Payments and money transfer company [[MoneyGram]] signed an agreement with Coinme in 2021 to allow customers to load cash into, or out of, bitcoin wallets.<ref>{{Cite web |last=Marino |first=Kate |date=2021-08-11 |title=MoneyGram CEO Alex Holmes says the pandemic accelerated digital innovation |url=https://www.axios.com/moneygram-ceo-alex-homes-digital-innovation-pandemic-34d97013-c4bb-4cb7-9234-d26c92cf3d65.html |access-date=2022-03-27 |website=Axios |language=en}}</ref> from select MoneyGram retail locations in the U.S.<ref>{{Cite web |last=Browne |first=Ryan |date=2021-05-12 |title=MoneyGram to let cryptocurrency holders cash in their investments |url=https://www.cnbc.com/2021/05/12/moneygram-to-let-cryptocurrency-traders-cash-in-their-investments.html |access-date=2022-03-27 |website=CNBC |language=en}}</ref> In 2022, MoneyGram purchased a 4% stake in Coinme.<ref>{{Cite web |title=MoneyGram Buys a 4% Stake in Cryptocurrency ATM Operator Coinme |url=https://finance.yahoo.com/news/moneygram-buys-4-stake-cryptocurrency-164207251.html |access-date=2022-03-28 |work= FXEmpire |via=finance.yahoo.com |date=6 January 2022 |language=en-US}}</ref>
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== Awards and Rankings ==


⚫
== Awards and rankings ==
⚫
* The Puget Sound Business Journal ranked the company first on its list of fastest growing private companies (2021).<ref>{{Cite web |last=Storer |first=Mark |date=November 25, 2021 |title=Coinme is growing and 'hiring aggressively in all parts of the business' |url=https://www.bizjournals.com/seattle/news/2021/11/25/coinme-fastest-growing-private-company-no-1-rank.html |access-date=2022-03-27 |website=www.bizjournals.com}}</ref>
* Seattle Business Magazine "100 Best Companies to Work For in Washington State" (2021).<ref>{{Cite web |date=2021-11-22 |title=100 Best Companies To Work For 2021: Midsize |url=https://www.seattlebusinessmag.com/100-best-companies-work/100-best-companies-work-2021-midsize |access-date=2022-03-28 |website=Seattle Business Magazine |language=en}}</ref>
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* Inc. 5000 Regionals ranked the company #9 on its list of fasted growing companies (2022).<ref>{{Cite web |title=Meet the 150 Economic All-Stars of the Pacific |url=https://www.inc.com/regionals/pacific/2022 |access-date=2022-03-28 |website=Inc.com |language=en}}</ref>
* Built-In 100 Best Remote Companies to Work For (2022).<ref>{{Cite web |title=100 Best Remote Companies to Work For 2022 {{!}} Built In |url=https://builtin.com/remote-work/best-places-remote-work |access-date=2022-03-28 |website=builtin.com |language=en}}</ref>


⚫
* ''[[Puget Sound Business Journal]]'' listed it as one of the fastest growing private companies in 2021.<ref>{{Cite web |last=Storer |first=Mark |date=November 25, 2021 |title=Coinme is growing and 'hiring aggressively in all parts of the business' |url=https://www.bizjournals.com/seattle/news/2021/11/25/coinme-fastest-growing-private-company-no-1-rank.html |access-date=2022-03-27 |website=www.bizjournals.com}}</ref>
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== External Links ==
⚫
* ''[[Inc. (magazine)|Inc.]]'' listed Coinme as one of the fastest growing companies of 2022.<ref>{{Cite web |title=Meet the 150 Economic All-Stars of the Pacific |url=https://www.inc.com/regionals/pacific/2022 |access-date=2022-03-28 |website=Inc.com |language=en}}</ref>
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[https://coinme.com/ Company website]


== References ==
== References ==

<references />

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== External links ==

⚫
* [https://coinme.com Coinme website]

[[Category:Financial technology companies]]
[[Category:Bitcoin companies]]
[[Category:Bitcoin organizations]]
[[Category:Companies based in Seattle]]
[[Category:Bitcoin exchanges]]
[[Category:2014 establishments in Washington (state)]]

Latest revision as of 00:11, 16 September 2024

Coinme, Inc.
Company typePrivate
IndustrySoftware and technology services
Founded2014; 10 years ago (2014)
Founders
  • Neil Bergquist
  • Michael Smyers
HeadquartersSeattle, Washington, US
Key people
Neil Bergquist (CEO)
Number of employees
86 (2021)[1]

Coinme is a cryptocurrency exchange headquartered in Seattle, Washington. The company offers technology for bitcoin ATMs and kiosks, which allow users to convert cryptocurrency into cash. The company launched one of the first licensed bitcoin ATMs in the U.S.

History

[edit]

According to co-founders Neil Bergquist and Michael Smyers, after learning about a Canadian bitcoin ATM, they purchased three bitcoin ATMs from a manufacturer in 2014.[2] The two began working with the Washington State Department of Financial Institutions to revise state finance laws and secure a license to operate a kiosk.[3]

Three pilot bitcoin ATM kiosks were situated in the greater Seattle area. One in Spitfire Grill[4] in Belltown, another in Startup Hall at the University of Washington, and the third at Southcenter Mall south of Seattle.[2]

Coinme was formally established in 2014 with Bergquist as CEO[5] and Smyers as vice president of engineering.[2] They deployed and operated nearly 70 Bitcoin ATMs across the Western United States before developing an application programming interface (API) for converting ATMs and kiosks into cryptocurrency exchanging machines.[6]

The first state-licensed Bitcoin ATM in the United States was installed by Coinme at the Spitfire Grill in Seattle, Washington in the spring of 2014. The company later installed a bitcoin-enabled ATM in the Spokane Valley Mall and became the first licensed company in the state of Washington to offer digital currency through ATMs.[7]

Coinme takes a 4 percent transaction fee for every dollar exchanged through its network of ATMs.[8]

By June 2021, Coinme employed 58 people and had raised more than $30 million in investment capital. Coinme investors include Xpring, Blockchain.com Ventures, Pantera Capital, Digital Currency Group and MoneyGram International.[citation needed] At the end of 2021, the company was in the latter stages of completing the necessary filings to operate in all U.S. states as a money transfer license (MTL) holder.[9]

In January 2022 the company named Tom Davis, a former IBM executive and FBI special agent, as its first general counsel.[10][11][12] In February 2022, Brian Reisbeck joined the company as chief compliance officer.[13]

In 2023, Coinme was fined $4 million by the SEC for allegedly being involved in unregistered security offerings with UpToken. [14]

Robert Villaseñor joined Coinme in June 2024 as chief legal and compliance officer.[15]

Coinstar

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Coinme enabled Coinstar machine selling Bitcoin

Coinstar, an operator of coin-converting kiosks, signed an agreement with Coinme in 2019 to enable consumers to purchase bitcoin at existing Coinstar machines. Coinme-enabled Coinstar machines expanded to a number of states including Connecticut, where more than 90 machines were placed in Stop & Shop and Big Y supermarkets.[16] Coinstar and Coinme announced in October 2021 that Walmart would be putting 200 of the Coinstar-enabled bitcoin kiosks in its stores.[17] By January of 2022, more than 7,000 Coinme-enabled Coinstar kiosks were operating in the United States..[18]

According to Kent & Bain in Bitcoin for Dummies (2022), purchases made through Coinme's Coinstar kiosks charge both a 'transaction fee' and a 'cash convenience fee' which combine to add an additional 12% fee to the cost of any bitcoin bought via the service.[19]

MoneyGram

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Payments and money transfer company MoneyGram signed an agreement with Coinme in 2021 to allow customers to load cash into, or out of, bitcoin wallets.[20] from select MoneyGram retail locations in the U.S.[21] In 2022, MoneyGram purchased a 4% stake in Coinme.[22]

Awards and rankings

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References

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  1. ^ "FT ranking: The Americas' Fastest-Growing Companies 2023". Financial Times. March 27, 2023.
  2. ^ a b c "The future of the digital economy — News". willamette.edu. Retrieved 2022-03-27.
  3. ^ "Northwest Companies Raise Big Dough With Virtual Currencies Amid Security Warnings". Northwest Public Broadcasting. 2018-01-19. Retrieved 2022-05-07.
  4. ^ Banse, Tom (2018-10-24). "Belltown Bar Back From The Future With A Bitcoin ATM". kuow.org. Retrieved 2022-03-27.
  5. ^ "Neil Bergquist, Coinme, Inc". www.bloomberg.com. Retrieved 2022-03-27.
  6. ^ "Coinme, a Seattle startup that is 'crypto-enabling' legacy financial services, raises $10M". GeekWire. 2021-06-16. Retrieved 2022-03-27.
  7. ^ "Seattle company installs bitcoin ATM at the Spokane Valley Mall | The Spokesman-Review". www.spokesman.com. Retrieved 2022-03-27.
  8. ^ Danial, Kiana; Laurence, Tiana; Kent, Peter; Bain, Tyler; Solomon, Michael G. (2022-01-19). Cryptocurrency All-in-One For Dummies. John Wiley & Sons. ISBN 978-1-119-85580-4.
  9. ^ "CFO touts controller role as crypto-enabler expands footprint". CFO Dive. Retrieved 2022-03-27.
  10. ^ "Cash-to-Crypto Company Picks Former IBM Exec as First GC". Corporate Counsel. Retrieved 2022-03-27.
  11. ^ "US crypto exchange hires former FBI special agent as first general counsel". www.globallegalpost.com. Retrieved 2022-03-28.
  12. ^ "Coinme hires former FBI agent to keep up with 'rapidly evolving' regulation". CityAM. 2022-01-27. Retrieved 2022-03-27.
  13. ^ Lyudvig, Anna (2022-02-28). "ON THE MOVE: Sal Arnuk to Virtu Financial; CalPERS Adds Nicole Musicco". Traders Magazine. Retrieved 2022-03-27.
  14. ^ "Attorney General James Secures $4.3 Million from Cryptocurrency Company for Defrauding Investors". New York State Attorney General. May 18, 2023.
  15. ^ Aislinn Keely (June 26, 2024). "Crypto ATM Co. Coinme Taps MoneyGram Atty As Legal Head". Law360. Retrieved July 15, 2024.
  16. ^ Stacom, Don (8 July 2021). "Coinstar bringing bitcoin buying to grocery stores across Connecticut". courant.com. Retrieved 2022-03-27.
  17. ^ "Cash is no longer king in the U.S., but will it ever go away?". American Banker. 2022-01-27. Retrieved 2022-03-27.
  18. ^ "Bitcoin & groceries: In NC you can now exchange cash for cryptocurrency at some stores | WRAL TechWire". wraltechwire.com. 2021-06-15. Retrieved 2022-03-27.
  19. ^ Kent, Peter; Bain, Tyler (2022-03-02). Bitcoin For Dummies. John Wiley & Sons. ISBN 978-1-119-60214-9.
  20. ^ Marino, Kate (2021-08-11). "MoneyGram CEO Alex Holmes says the pandemic accelerated digital innovation". Axios. Retrieved 2022-03-27.
  21. ^ Browne, Ryan (2021-05-12). "MoneyGram to let cryptocurrency holders cash in their investments". CNBC. Retrieved 2022-03-27.
  22. ^ "MoneyGram Buys a 4% Stake in Cryptocurrency ATM Operator Coinme". FXEmpire. 6 January 2022. Retrieved 2022-03-28 – via finance.yahoo.com.
  23. ^ Storer, Mark (November 25, 2021). "Coinme is growing and 'hiring aggressively in all parts of the business'". www.bizjournals.com. Retrieved 2022-03-27.
  24. ^ "Meet the 150 Economic All-Stars of the Pacific". Inc.com. Retrieved 2022-03-28.
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