On February 9, the state of Washington’s Department of Financial Institutions (DFI) issued a consent order requiring a digital assets-focused money transmitter to cease and desist from violating the state’s Uniform Money Services Act (UMSA) and to surrender its license within 90 days. The order followed an investigation of the company, through which the DFI determined the company violated the state’s UMSA, alleging unfair and deceptive practices, unsafe and unsound business conduct, and additional violations, including failure to maintain the required tangible net worth, inaccurate financial records, untimely reporting of adverse actions, and failure to file required reports, among others. The consent order required written notice to affected state consumers, instructions for withdrawing funds, and remittance of unclaimed funds to the state’s “Unclaimed Property Program.” Further, the order prohibited the transmitter from participating in the industry for three years and included a $150,000 fine — with $50,000 stayed until February 9, 2029, contingent on compliance — as well as an investigation fee of $4,170. The consent order did not include any admission of wrongdoing.
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