Washington State’s Department of Financial Institutions has accused Coinflip and its CEO, Benjamin Weiss, of violating the Uniform Money Services Act, and is seeking to revoke the company’s money transmitter license. The proposed action also includes barring the company and related individuals from continuing in the industry and imposing a $1.0296 million fine. According to the agency, a 2025 examination found shortcomings in Coinflip’s anti-money laundering controls, weak transaction monitoring, failure to enforce transaction limits, inaccurate regulatory reporting, and unclear fee disclosures. DFI also alleged that Coinflip failed to return funds to at least 15 customers on time as required. Under the proposed order, Coinflip would be required to issue refunds to eligible Washington state customers, while customers aged 60 and older could receive refunds covering transaction fees and markups. Coinflip and Benjamin Weiss may request an administrative hearing to challenge the allegations, the refund requirements, the license revocation, the financial penalty, and the proposed industry ban. The report was cited from Bitcoin.com News.
Washington State’s Department of Financial Institutions, or DFI, 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 to operate in the industry, and impose a $1.0296 million penalty.
According to DFI, a 2025 examination found a series of compliance issues 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 return funds to at least 15 customers in a timely manner as required. Under the proposed order, Coinflip would need 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 challenge the allegations, the refund requirements, the proposed license revocation, the monetary penalty, and the industry ban.
The report was cited from Bitcoin.com News.
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