Washington State’s Department of Financial Institutions has accused Coinflip and its CEO, Benjamin Weiss, of violating the Uniform Money Services Act. The agency is seeking to revoke Coinflip’s money transmitter license, bar the company and related individuals from continuing in the industry, and impose a $1.0296 million fine. According to the DFI, a 2025 examination found deficiencies in the company’s anti-money laundering controls, transaction monitoring, enforcement of transaction limits, accuracy of regulatory reporting, and clarity of fee disclosures. The regulator also said Coinflip failed to return funds to at least 15 customers within the required timeframe. Under a proposed order, Coinflip would be required to issue refunds to eligible Washington customers, while customers aged 60 and older could receive refunds for transaction fees and markups. Coinflip and Benjamin Weiss may request an administrative hearing to challenge the allegations, refund requirements, license revocation, monetary penalty, and proposed industry ban.
According to ChainCatcher, the Washington State Department of Financial Institutions, or DFI, has accused Coinflip and its CEO Benjamin Weiss of violating the Uniform Money Services Act.
The DFI is seeking to revoke Coinflip’s money transmitter license, prohibit the company and related individuals from continuing to operate in the industry, and impose a $1.0296 million fine.
DFI cites compliance and disclosure failures
The agency said a 2025 examination found that Coinflip had inadequate anti-money laundering controls, insufficient transaction monitoring, failed to enforce transaction limits, submitted inaccurate regulatory reports, and did not clearly disclose fees.
The DFI also accused Coinflip of failing to return funds to at least 15 customers within the required timeframe.
Proposed order includes customer refunds
Under the proposed order, Coinflip would be required to refund eligible customers in Washington State. Customers aged 60 and older could also receive refunds for transaction fees and markups.
Coinflip and Benjamin Weiss may request an administrative hearing to contest the allegations, the refund requirements, the license revocation, the fine, and the proposed industry ban.
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