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On February 9, 2026, the Washington State Department of Financial Institutions (DFI) entered into a consent order with a digital assets-focused money transmitter requiring the company to cease and desist from violating Washington's Uniform Money Services Act and to surrender its money transmitter license within 90 days. The order followed DFI's investigation, which concluded the company allegedly engaged in unfair and deceptive practices and unsafe and unsound business conduct under state law.
According to the order, the DFI determined that the money transmitter failed to maintain required tangible net worth, kept inaccurate financial records, filed late adverse event reports, and failed to make required regulatory filings. As part of the consent order, the company must provide written notice to affected Washington consumers, offer instructions for customers to withdraw their funds, and remit any unclaimed funds to the state's Unclaimed Property Program.
In addition to surrendering its license, the company is barred from participating in the industry for three years. The order imposes a $150,000 civil penalty, with $50,000 stayed until February 9, 2029, contingent on compliance, in addition to a $4,170 investigation fee. The consent order did not include any admission of wrongdoing by the company.
Putting It Into Practice: This action highlights that state regulators are continuing to apply traditional money transmission statutes to digital asset-focused business models. Maintenance of tangible net worth, accurate financial reporting, and timely regulatory filings remain foundational supervisory expectations, regardless of whether a company's activities involve fiat currency, digital assets, or a combination of both.
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