Washington DFI seeks to revoke Coinflip license, impose $1,029,600 fine

  • Washington DFI filed charges against Coinflip and CEO Benjamin Weiss.
  • $1,029,600 fine is proposed alongside license revocation and industry prohibitions.
  • Washington's filing remains allegations, and Coinflip may request an administrative hearing.

Washington State Department of Financial Institutions (DFI) filed charges Sept. 3 against GPD Holdings LLC, doing business as Coinflip, and CEO Benjamin Weiss, seeking to revoke Coinflip's license, bar the company and Weiss from the industry, and impose a $1,029,600 fine. The action follows a 2025 examination that allegedly found deficient compliance and risk-management practices, including inadequate anti-money laundering controls, weak transaction monitoring, unenforced limits, inaccurate and late regulatory reports, unclear fee disclosures and an overdue transaction-alert backlog. DFI also alleges Coinflip lacked adequate surety bond coverage, failed to report certain banking relationships, legal actions and a data breach affecting Washington customers, and did not refund at least 15 customers within the required period. The agency said seniors generated more than 50% of Coinflip's Washington business, highlighting concerns about crypto kiosk scams targeting vulnerable consumers. The proposed order would require refunds for certain Washington transactions beginning Sept. 1, 2023, including fees and markup for customers age 60 or older and full transaction amounts, fees and markup for customers listed in a confidential attachment. The filing remains a statement of allegations, and Coinflip and Weiss may request an administrative hearing. DFI is also seeking a $3,837 investigation fee, prosecution costs and continuing access to relevant company records.

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