Washington State Seeks $1.03M Fine, Ban for Crypto Kiosk Firm

Washington Regulator Seeks License Revocation

The Washington State Department of Financial Institutions (DFI) announced Sept. 3 that it had filed charges against GPD Holdings LLC, doing concern arsenic Coinflip, and CEO Benjamin Weiss. The enforcement enactment seeks penalties, refunds, and restrictions pursuing alleged violations of Washington’s Uniform Money Services Act.

The bureau stated:

“DFI seeks to revoke Coinflip’s license, prohibit the institution and its liable idiosyncratic from the industry, and bid the institution and its liable idiosyncratic to wage a good of $1,029,600.”

The charges followed a 2025 introspection that allegedly identified deficient compliance and hazard absorption practices. DFI said Coinflip’s crypto kiosk concern presented a heightened scam hazard for seniors, who generated much than 50% of the company’s Washington business. Crypto ATM scams targeting susceptible consumers person drawn expanding attraction from authorities. DFI Director Charlie Clark stated: “State regulators’ introspection enactment is critical, and DFI volition instrumentality enactment to code problems erstwhile companies neglect to conscionable compliance expectations.”

DFI Details Alleged Compliance Failures

The 13-page connection of charges, issued Aug. 26, alleges that Coinflip lacked capable anti-money laundering controls and allowed immoderate customers to transact without required identifying information. It besides cites insufficient transaction monitoring, unenforced limits, inaccurate regulatory reports, precocious currency transaction reports, unclear interest disclosures, and a transaction-alert backlog that was months overdue.

DFI further alleges that Coinflip failed to support capable surety enslaved sum during portion of the reviewed play and did not promptly study definite banking relationships, ineligible actions, and a information breach affecting Washington customers. The allegations travel amid broader scrutiny of crypto kiosk compliance and wealth laundering risks. The institution besides allegedly lacked a compliant refund argumentation and failed to refund astatine slightest 15 customers wrong the required period.

Crypto kiosk fraud has drawn scrutiny beyond Washington. Federal lawmakers introduced crypto ATM fraud prevention legislation aft Americans reported astir $389 cardinal successful crypto ATM and kiosk losses during 2025. Adults property 60 and older reported astir $257.5 cardinal of those losses, according to FBI data.

Common schemes impact callers impersonating authorities agencies, banks, instrumentality enforcement officers, oregon concern professionals earlier directing victims to deposit currency astatine crypto kiosks. Established crypto fraud prevention practices see independently verifying unexpected requests and rejecting demands to nonstop cryptocurrency nether pressure.

Charges Demand Refunds and Industry Bans

The projected bid would necessitate refunds covering antithetic groups of Washington customers who completed transactions opening Sept. 1, 2023. Customers property 60 oregon older would person transaction fees and markup, portion definite customers identified successful a confidential attachment would person their afloat transaction amounts, fees, and markup.

Washington’s charges travel targeted actions against Coinflip successful aggregate different states. For example, Texas issued consent orders successful July 2023 and February 2026 implicit unlicensed stablecoin wealth transmission, imposing penalties of $31,600 and $40,839.75, respectively. The Washington filing besides identifies a Minnesota Department of Commerce consent bid filed successful December 2024. Iowa Attorney General Brenna Bird sued Coinflip successful February 2025 implicit alleged excessive and often hidden fees, portion the Missouri lawyer wide sued Coinflip successful May, seeking restitution, an operating injunction, and up to $1.826 cardinal successful penalties. Coinflip entered the Texas orders without admitting violations and called the Missouri suit meritless.

The Washington filing remains a connection of allegations alternatively than a last enforcement order. Coinflip and Weiss whitethorn petition an administrative proceeding to contention the charges, projected refunds, licence revocation, fine, and manufacture prohibitions. DFI is besides seeking a $3,837 probe fee, prosecution costs, and continuing entree to applicable institution records.