Washington State Proposes Revoking Coinflip's License and Imposing a $1.0296 Million Fine

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Washington State’s DFI has accused Coinflip and CEO Benjamin Weiss of violating the Uniform Money Services Act, citing failures in CFT and anti-money laundering controls. The agency seeks to revoke Coinflip’s license, impose a $1.0296 million fine, and ban it from the industry. Issues include inadequate monitoring, poor reporting, and unclear fees. The proposed order also requires refunds to Washington customers, including seniors. Coinflip and Weiss may request an administrative hearing to challenge the DFI’s actions. The case underscores tensions surrounding liquidity and regulation of crypto markets.

Odaily Planet Daily reports that Coinflip and its CEO, Benjamin Weiss, have been accused by the Washington State Department of Financial Institutions (DFI) of violating the Uniform Money Services Act. The DFI is seeking to revoke Coinflip’s money transmission license, prohibit the company and its executives from continuing operations, and impose a fine of $1,029,600.

DFI stated that the 2025 examination found Coinflip had inadequate anti-money laundering controls, insufficient transaction monitoring, failure to enforce transaction limits, inaccurate regulatory reporting, and unclear fee disclosures. The agency also alleged that Coinflip failed to promptly refund payments to at least 15 customers as required.

The proposed order requires Coinflip to issue refunds to eligible Washington state customers, with customers aged 60 and older eligible for refunds of transaction fees and markups. Coinflip and Benjamin Weiss may request an administrative hearing to contest the allegations, refund requirements, license revocation, fines, and industry ban. (Bitcoin.com News)

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