Washington State Seeks $1.029 Million Fine Against Crypto Kiosk Firm
The Washington State Department of Financial Institutions (DFI) has filed charges against Coinflip and its CEO, Benjamin Weiss. The agency seeks to revoke Coinflip's license, impose a $1.029 million fine, and prohibit the company from operating in the industry.
The DFI alleges that Coinflip engaged in deficient compliance and risk management practices during a 2025 examination. The agency claims that the company failed to maintain adequate anti-money laundering controls, allowed customers to transact without required identifying information, and did not promptly report certain banking relationships, legal actions, and a data breach affecting Washington customers.
The charges come amid broader scrutiny of crypto kiosk compliance and money laundering risks. According to FBI data, adults age 60 and older reported about $257.5 million in crypto ATM and kiosk losses during 2025. The proposed order would require refunds covering different groups of Washington customers who completed transactions beginning September 1, 2023.