Washington DFI Accuses Coinflip and CEO Benjamin Weiss of Money Services Violations
State regulator seeks license revocation, industry bar, and $1.0296 million fine against Coinflip and CEO over alleged AML and consumer-protection failures.
Washington state's Department of Financial Institutions has filed an enforcement action against crypto ATM operator Coinflip and its CEO Benjamin Weiss, alleging violations of the Uniform Money Services Act.
The agency cites a 2025 examination that identified inadequate anti-money laundering controls, insufficient transaction monitoring, failure to enforce transaction limits, inaccurate regulatory reporting, and unclear fee disclosures.
The complaint also alleges that Coinflip failed to issue timely refunds to at least 15 customers.
Proposed sanctions and next steps
The proposed order calls for revocation of Coinflip's money transmission license, an industry bar for the firm and its executives, and a $1.0296 million fine.
It further requires refunds to eligible Washington customers, with enhanced terms for those aged 60 and older.
Coinflip and Benjamin Weiss may request an administrative hearing to contest the allegations and proposed sanctions.
Unresolved questions
The allegations remain unproven and the outcome of any hearing is unknown.
The exact scale of violations and the total number of affected customers beyond the 15 cited have not been specified.