Washington State regulators are seeking to revoke the licence of cryptocurrency kiosk operator Coinflip and impose a $1.03m (£? not convert) fine over alleged compliance failures, including inadequate anti-money laundering controls and delayed refunds for customers.
The Washington State Department of Financial Institutions (DFI) filed charges on 3 September against GPD Holdings LLC, which trades as Coinflip, and its chief executive, Benjamin Weiss. The enforcement action also seeks refunds for affected consumers and bans preventing both the company and Weiss from working in the industry.
The allegations follow a 2025 examination by the DFI, which it says identified deficiencies in Coinflip’s compliance and risk-management systems. The regulator said the company’s cryptocurrency kiosks posed a heightened risk of scams targeting older people. Customers aged 60 and above accounted for more than half of Coinflip’s business in Washington, according to the agency.
DFI Director Charlie Clark said: “State regulators’ examination work is critical, and DFI will take action to address problems when companies fail to meet compliance expectations.”
A 13-page statement of charges, issued on 26 August, alleges that Coinflip allowed some customers to carry out transactions without providing information required for identification. It also claims the company’s transaction monitoring was inadequate, limits on transactions were not enforced and regulatory reports contained inaccurate information.
The filing further alleges that currency transaction reports were submitted late, fee disclosures were unclear and the company had a backlog of transaction alerts that had remained unresolved for months.
The DFI says Coinflip also failed to maintain sufficient surety bond cover for part of the period examined. It alleges the company did not promptly disclose some of its banking relationships, legal proceedings or a data breach affecting customers in Washington.
In addition, the regulator claims Coinflip did not have a compliant refund policy and failed to reimburse at least 15 customers within the required period.
Under the proposed order, refunds would cover different categories of Washington customers who completed transactions from 1 September 2023 onwards. Customers aged 60 or older would be entitled to receive their transaction fees and mark-up. Certain other customers, identified in a confidential attachment, would receive their full transaction amounts, as well as fees and mark-up.
The case comes as cryptocurrency kiosks face wider scrutiny over fraud and money-laundering risks. Federal lawmakers have introduced legislation aimed at preventing fraud involving crypto ATMs after Americans reported about $389m in cryptocurrency ATM and kiosk losses during 2025. FBI data showed that people aged 60 and over reported approximately $257.5m of those losses.
Common scams involve callers posing as government officials, bank employees, law-enforcement officers or investment professionals. Victims are then instructed to deposit cash into a cryptocurrency kiosk. Authorities advise consumers to verify unexpected requests independently and reject demands to send cryptocurrency under pressure.
Washington’s action follows regulatory and legal proceedings against Coinflip in other states. Texas issued consent orders in July 2023 and February 2026 relating to unlicensed stablecoin money transmission, with penalties of $31,600 and $40,839.75 respectively. The Washington filing also refers to a Minnesota Department of Commerce consent order filed in December 2024.
Iowa Attorney General Brenna Bird sued Coinflip in February 2025, alleging excessive and frequently hidden fees. The Missouri attorney general filed a lawsuit in May seeking restitution, an injunction preventing the company from operating and penalties of up to $1.826m. Coinflip entered the Texas orders without admitting violations and described the Missouri case as meritless.
The Washington charges are allegations, rather than a final enforcement order. Coinflip and Weiss can request an administrative hearing to challenge the proposed licence revocation, fine, refunds and industry bans. The DFI is also seeking a $3,837 investigation fee, prosecution costs and continued access to relevant company records.
Coinflip has also officially launched its digital currency kiosks, also known as automated teller machines (ATMs), in Mexico, marking its second…
