According to ME News, on September 5 (UTC+8), Washington state regulators are seeking to revoke Coinflip’s business license and impose a $1.03 million fine for alleged violations of compliance regulations regarding cryptocurrency ATMs. The regulators also require the company and its CEO to issue refunds to consumers and prohibit them from operating in the industry. These allegations stem from a 2025 review that reportedly uncovered deficiencies in Coinflip’s compliance and risk management practices. The Washington State Department of Financial Institutions (DFI) stated that Coinflip’s cryptocurrency ATM operations pose a heightened risk of fraud to elderly consumers, who account for over 50% of the company’s business in Washington. Fraud targeting vulnerable consumers through cryptocurrency ATMs has drawn increasing attention from authorities. DFI Director Charlie Clark said, “State regulatory oversight is essential, and when companies fail to meet compliance standards, the DFI will take action to address the issue.” (Source: PANews)
Washington regulators seek to revoke Coinflip's license and impose a $1.03 million fine.
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Washington regulators are moving to revoke Coinflip’s license and impose a $1.03 million fine due to compliance failures related to crypto ATMs. A 2025 review identified significant deficiencies in risk management and compliance, with the Washington State Department of Financial Institutions (DFI) highlighting increased fraud risks in liquidity and crypto markets. DFI Director Charlie Clark emphasized the importance of strict adherence to CFT (Countering the Financing of Terrorism) regulations, noting that over half of Coinflip’s business in the state originates from senior customers.
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