Washington State Seeks $1.03M Fine and License Revocation for Coinflip

Washington State’s Department of Financial Institutions (DFI) filed a formal enforcement action against GPD Holdings LLC, operating as Coinflip, and its CEO Benjamin Weiss. The agency seeks to revoke the company’s money‑transmitter license, impose a $1,029,600 fine, and bar both the firm and its responsible individual from the crypto‑kiosk industry in the state.

Alleged Compliance Shortcomings

The 13‑page statement of charges, issued on August 26, outlines multiple deficiencies identified during a 2025 examination:

• Inadequate anti‑money‑laundering controls and failure to collect required customer identification.
• Insufficient transaction monitoring, unenforced limits, and delayed currency‑transaction reports.
• Inaccurate regulatory filings and a backlog of transaction alerts that persisted for months.
• Failure to maintain required surety bond coverage for part of the review period.
• Late reporting of banking relationships, legal actions, and a data breach affecting Washington customers.
• Non‑compliant refund policy, with at least 15 customers not refunded within the statutory timeframe.

Consumer Refund and Ban Provisions

The proposed order would require refunds to Washington customers who completed transactions after September 1, 2023. Seniors (age 60+) would receive transaction fees and markup, while a separate confidential group would be reimbursed for the full transaction amount, fees, and markup.

Broader Regulatory Context

Coinflip has faced similar actions in other states, including consent orders in Texas (2023, 2026) and a Minnesota consent order (December 2024). Additional lawsuits have been filed by the Iowa and Missouri attorneys general, alleging excessive fees and seeking restitution.

Next Steps for Coinflip

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 continued access to the company’s records.