Washington Regulators Seek to Revoke CoinFlip License, Impose $1.03M Fine Over Alleged AML, Consumer-Protection Failures

Washington state regulators have escalated their crackdown on crypto-kiosk operators, filing charges against GPD Holdings, LLC, doing business as CoinFlip, and seeking to revoke the company’s license, bar it and a responsible individual from the industry, order consumer refunds and impose a $1.0296 million fine over alleged anti-money-laundering and consumer-protection failures.

The Washington State Department of Financial Institutions, or DFI, said Sept. 3 that its Statement of Charges alleges CoinFlip failed to comply with anti-money-laundering and Bank Secrecy Act requirements, did not follow due-diligence procedures and allowed transactions to proceed without required documents. DFI also alleged the company failed to follow its own terms of service, let some transaction alerts sit unreviewed for six to nine months, had insufficient transaction monitoring, failed to enforce transaction limits, did not timely file some required Currency Transaction Reports, and failed to provide required disclosures, refunds and accurate transaction-cost information to consumers. The agency said CoinFlip’s crypto-kiosk business model posed a heightened risk to seniors being scammed, and that more than 50% of the company’s business in Washington came from seniors.

“State regulators’ examination work is critical, and DFI will take action to address problems when companies fail to meet compliance expectations,” Charlie Clark, the department’s director, said in a statement. “The Charges in this case are an example of state regulation in action to protect Washington consumers.”

The case is an administrative enforcement action, not a final ruling. DFI said the allegations have not been adjudicated and that CoinFlip and the responsible individual have the right to request a hearing to contest the charges. No contemporaneous public response from CoinFlip to the Washington action was identified in the sourced materials.

Washington regulates virtual-currency transmission under its Uniform Money Services Act, which gives DFI oversight of licensed money transmitters, including crypto-kiosk operators. CoinFlip is one of the larger U.S. crypto-ATM operators, according to market reports and competitor filings, with several thousand kiosks nationwide. That makes the Washington action significant beyond a single state case, even as it remains focused on alleged compliance failures in Washington.

The move also fits into a broader but still targeted push by states to police the sector, particularly over fraud risks facing older consumers. Washington previously took action against Coinme in December 2025 and Bitcoin Depot in June 2026. Outside the state, Missouri’s attorney general sued CoinFlip in May 2026, and Tennessee’s ban on virtual-currency kiosks took effect this year after a federal judge denied an emergency request to block it on June 30.

In that separate Tennessee litigation, CoinFlip CEO Ben Weiss said some customers “choose kiosks because they want to use cash, lack convenient access to traditional banking products, are underbanked, or do not want to link bank credentials to an online exchange.” Washington regulators, however, are now alleging that CoinFlip’s controls in the state fell short in ways that exposed consumers, especially seniors, to harm.