Coinme Hires Legal Heavyweight Amidst Mounting Regulatory Scrutiny

By Kenneth Walker

SEATTLE, WA – January 12, 2026 – Crypto payment platform Coinme today announced the appointment of Hazen Baron as its new general counsel, a strategic move that comes as the company navigates a minefield of recent regulatory penalties and legal disputes. While the company frames the hire as a step to support its expansion, Baron, a veteran attorney from Western Union and Walmart, steps into a role defined by urgent and substantial compliance challenges.

Baron will oversee all legal and regulatory functions, focusing on licensing, enterprise partnerships, and the evolving digital asset landscape. The appointment is being positioned by the company as a proactive measure to prepare for an expected new wave of regulatory clarity for stablecoins and crypto assets. However, this forward-looking strategy is set against a backdrop of significant past and ongoing enforcement actions that threaten the company's operations and reputation.

A Battle on Multiple Fronts

Coinme's decision to bring in a high-profile legal expert is underscored by a series of damaging regulatory actions over the past two years. The company, founded in 2014 and known for its crypto kiosks in grocery stores, has faced scrutiny from both federal and state authorities, painting a picture of a firm struggling with fundamental compliance and financial reporting obligations.

In May 2023, the U.S. Securities and Exchange Commission (SEC) fined Coinme, its subsidiary Up Global, and CEO Neil Bergquist a total of $4 million. The penalty resolved charges related to a 2017 Initial Coin Offering (ICO) of an asset called "UpToken," which the SEC deemed an unregistered securities offering. The commission also found that the company made false and misleading statements to investors, leading to a three-year ban for Bergquist from serving as a director of a public company.

More recently, state-level regulators have intensified their oversight. In mid-2025, California's Department of Financial Protection and Innovation (DFPI) levied a $300,000 fine against Coinme for violating the state's new Digital Financial Assets Law. The investigation found the company's kiosks breached the $1,000 daily transaction limit and failed to provide required customer disclosures. The action, the first of its kind under the new law, included restitution for a scam victim who used a Coinme kiosk.

Troubles escalated in late 2025 when the Washington State Department of Financial Institutions (DFI) issued a temporary cease-and-desist order against the Seattle-based firm. The DFI alleged that Coinme improperly recognized over $8 million in unredeemed customer crypto vouchers as company income, operated with a negative tangible net worth, and failed to turn over unclaimed funds. The state sought to revoke Coinme's money transmitter license and ban its CEO from the industry for 10 years before an interim deal allowed operations to resume.

These actions followed a 2024 suspension of its license in Connecticut after a multistate examination revealed deficiencies in its Anti-Money Laundering (AML) program and a failure to maintain the required minimum tangible net worth.

A 'TradFi' Veteran for a Web3 World

It is this challenging environment that Hazen Baron enters. His resume appears tailor-made to address Coinme's most pressing weaknesses. With over a decade of experience in senior legal and compliance roles at financial giants like Western Union and retail behemoth Walmart, Baron brings deep expertise in building the very systems Coinme has been cited for lacking.

His background includes developing enterprise-scale AML, Know Your Customer (KYC), and fraud prevention programs—areas where regulators found Coinme deficient. His most recent role as legal counsel at blockchain payments firm Stronghold provided direct experience in the digital asset space. Baron is also a Certified Anti-Money Laundering Specialist (CAMS), a key credential for a firm needing to overhaul its compliance framework.

"Hazen brings a rare combination of legal acumen and operational experience in regulated financial services," said Neil Bergquist, CEO and co-founder of Coinme, in the company's press release. "He understands how to build digital consumer financial products at scale. His leadership will be instrumental as we navigate evolving regulatory frameworks and expand access to compliant crypto products."

Baron's appointment is part of a broader industry trend where maturing crypto firms are recruiting seasoned talent from traditional finance (TradFi) to build credibility, institutionalize compliance, and prepare for mainstream adoption. For Coinme, however, the hire appears less about maturation and more about remediation and survival.

Navigating the Next Phase of Regulation

Beyond addressing past failings, Baron's mandate includes preparing Coinme for the future. The U.S. is on the cusp of implementing its first major federal frameworks for digital assets. The recently passed Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act creates a federal licensing regime for stablecoin issuers, while the pending Digital Asset Market Clarity Act of 2026 aims to divide oversight between the SEC and CFTC.

This new legislative landscape, while providing long-awaited clarity, also introduces stringent new requirements for reserves, reporting, and risk management. Companies that cannot meet these heightened standards will be unable to operate legally. Baron's experience navigating complex regulatory affairs will be critical as Coinme seeks to position its enterprise stablecoin and payments platform as a compliant solution for partners.

Compounding these challenges is Coinme's ongoing legal battle with its former key partner, Coinstar. In a lawsuit filed in late 2024, Coinme accused the kiosk giant of misusing its trade secrets to launch a competing crypto product, a move Coinme claims decimated its transaction volumes. This dispute adds another layer of legal complexity and financial pressure that Baron will have to manage. His success will be measured not only by his ability to clean up past compliance issues but also by his capacity to secure the company's legal and commercial future in an increasingly competitive and regulated market.