The Washington State Department of Financial Institutions (DFI) announced September 3 that it had filed charges against GPD Holdings LLC, doing business as Coinflip, and CEO Benjamin Weiss. The enforcement action seeks penalties, refunds, and industry restrictions following alleged violations of Washington's Uniform Money Services Act.
DFI seeks to revoke Coinflip's money transmitter license, prohibit the company and its responsible individual from the industry, and order payment of $1,029,600 in fines. The charges followed a 2025 examination that allegedly identified deficient compliance and risk management practices. According to DFI, Coinflip's crypto kiosk business presented heightened scam risk for seniors, who accounted for more than 50 percent of the company's Washington business.
Alleged Compliance Failures
The 13-page statement of charges issued August 26 alleges that Coinflip lacked adequate anti-money laundering controls and allowed some customers to transact without required identifying information. Additional allegations include insufficient transaction monitoring, unenforced limits, inaccurate regulatory reports, late currency transaction reports, and unclear fee disclosures.
DFI further alleges that Coinflip failed to maintain adequate surety bond coverage during part of the reviewed period and did not promptly report certain banking relationships, legal actions, and a data breach affecting Washington customers. The company allegedly lacked a compliant refund policy and failed to refund at least 15 customers within the required period.
Broader Crypto Kiosk Concerns
Crypto kiosk fraud has drawn scrutiny beyond Washington. Federal lawmakers introduced crypto ATM fraud prevention legislation after Americans reported approximately $389 million in crypto ATM and kiosk losses during 2025. Adults age 60 and older reported about $257.5 million of those losses, according to FBI data.
Common schemes involve callers impersonating government agencies, banks, law enforcement officers, or investment professionals before directing victims to deposit cash at crypto kiosks.
Refunds and Multi-State Actions
The proposed order would require refunds covering different groups of Washington customers who completed transactions beginning September 1, 2023. Customers age 60 or older would receive transaction fees and markup, while certain customers identified in a confidential attachment would receive their full transaction amounts, fees, and markup.
Washington's charges follow targeted actions against Coinflip in multiple other states. Texas issued consent orders in July 2023 and February 2026 over unlicensed stablecoin money transmission, imposing penalties of $31,600 and $40,839.75 respectively. Minnesota's Department of Commerce issued a consent order in December 2024. Iowa Attorney General Brenna Bird sued Coinflip in February 2025 over alleged excessive and hidden fees. Missouri's attorney general sued Coinflip in May, seeking restitution, an operating injunction, and up to $1.826 million in penalties.
Coinflip and Weiss may request an administrative hearing to contest the charges, proposed refunds, license revocation, fine, and industry prohibitions. DFI is also seeking a $3,837 investigation fee, prosecution costs, and continuing access to relevant company records.
