Washington State Proposes Revoking Coinflip's License and Imposing a $1.03 Million Fine

According to Huoxing Finance, Coinflip and its CEO, Benjamin Weiss, have been charged by the Washington State Department of Financial Institutions (DFI) with violations of 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. The DFI stated that a 2025 inspection revealed deficiencies at Coinflip, including 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 entitled to refunds of transaction fees and markups. Coinflip and Benjamin Weiss may request an administrative hearing to contest the allegations, refund requirements, license revocation, fine, and industry ban.