Washington Seeks License Ban and $1.03 Million Penalty for CoinFlip, a Crypto Kiosk Operator

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.