Washington State regulators have moved to sanction a major cryptocurrency kiosk operator, arguing that gaps in its compliance systems left consumers—especially older residents—exposed to fraud and unfair charges.
On September 3, 2026, the Washington Department of Financial Institutions announced a Statement of Charges against GPD Holdings LLC, which operates as CoinFlip, and its chief executive, Benjamin Weiss.
The agency is asking to cancel the firm’s money transmitter license, bar both the company and Weiss from the industry, require customer refunds, and impose a civil penalty of $1,029,600.
The action follows a 2025 examination that, according to DFI, uncovered widespread shortcomings in how the company managed risk and followed state and federal rules.
CoinFlip runs walk-up kiosks that let people buy and sell digital assets with cash. DFI said more than half of the firm’s Washington transactions involved customers aged 60 or older—a group that has been disproportionately targeted in crypto-ATM scams nationwide.
Regulators contend the company’s business model therefore carried an elevated danger that seniors would be steered into irreversible transfers after being deceived by impersonators posing as banks, government agencies, or investment advisers.
The charges list a long series of alleged failures.
DFI claims CoinFlip did not maintain adequate anti-money-laundering and Bank Secrecy Act programs, skipped required customer-identification steps, ignored its own transaction limits and terms of service, and allowed a six-to-nine-month backlog of suspicious-activity alerts to go unreviewed.
The agency also alleges late or missing Currency Transaction Reports, inaccurate regulatory filings, missing virtual-currency risk disclosures, delayed or unpaid refunds for at least 15 Washington customers, and misleading statements about total transaction costs.
Additional deficiencies cited include insufficient surety-bond coverage at times and incomplete reporting of banking relationships, lawsuits, and a data breach that affected state residents.
DFI Director Charlie Clark framed the case as routine but necessary oversight.
“State regulators’ examination work is critical,” he said, “and DFI will take action to address problems when companies fail to meet compliance expectations.”
The size of the proposed fine, officials noted, reflects both the volume of alleged violations and their concentrated impact on older Washingtonians.
If the proposed order is adopted, CoinFlip would have to reimburse certain Washington customers who used its kiosks after September 1, 2023.
People 60 and older would recoup fees and price markups; a smaller group of identified victims would receive the full amount of their transactions plus those extra charges.
The company and Weiss have the right to request an administrative hearing to contest every element of the case.
The Washington filing is part of a broader pattern of state scrutiny of crypto kiosks.
Similar operators have faced license actions, fee-disclosure lawsuits, and local bans in other jurisdictions as reported losses from kiosk-related fraud have climbed.
CoinFlip itself has resolved or is contesting enforcement matters in several other states.
For now the Washington document remains a set of allegations, not a final order.
Consumers who believe they were harmed can file complaints through DFI’s website. The episode underscores a tension regulators have highlighted for years: the convenience of cash-to-crypto machines versus the difficulty of unwinding irreversible transfers once a scam has succeeded.