CoinFlip

Trust Rating

Grade: F (0/100 points). Pending license revocation in Washington, two state AG lawsuits, and breach exposure

CoinFlip's file has moved from investigations to proceedings that threaten market access. Washington's Department of Financial Institutions issued a Statement of Charges on August 26, 2026 seeking to revoke the company's license, bar it and CEO Benjamin Weiss from the industry for ten years, fine them $1,029,600, and refund fees and markup to every Washington customer aged 60 or older since September 2023 — alleging the company applied age-based limits at its over-the-counter desk but not at its kiosks while more than half of its Washington business came from seniors. Missouri's attorney general sued in May 2026 over scam facilitation and hidden fees of up to 21.9%, and Iowa's lawsuit alleging that 94.92% of money sent through CoinFlip in Iowa was scam-related remains pending. The 2023 breach of 36,646 customers' identity data compounds the risk of recovery scams against that same customer base. CoinFlip disputes the allegations and has the right to contest the Washington charges at a hearing. The rating reflects three pending government actions in three states and unresolved data-security exposure.

Fees

Fee data not yet available.

Key Facts

• Founded: 2015
• Locations: 3,645 across 45 states
• Transaction types: Buy only
• Phone: 1-773-800-2690
• Email: support@coinflip.tech

Enforcement & Regulatory History

DFI's Division of Consumer Services issued Statement of Charges C-26-4341-26-SC01 (announced Sept. 3, 2026) against GPD Holdings LLC and CEO Benjamin Weiss, seeking to revoke CoinFlip's Washington money transmitter license, bar the company and Weiss from the industry for ten years, impose a $1,029,600 fine, and order refunds of fees and markup to Washington customers aged 60 or older (and full refunds to identified scam victims) for transactions since Sept. 1, 2023. Following a 2025 examination, DFI alleges CoinFlip applied age-based lifetime limits to over-the-counter transactions but not kiosks while more than 50% of its Washington business came from seniors; repeat AML/BSA deficiencies from a 2023 exam; a 6-9 month backlog of unreviewed transaction alerts; late CTRs and SARs; misstated website fees ($2.49-$2.99 claimed vs $0.00-$5.99 actual); and failure to report the 2023 data breach, two bank accounts, and three adverse actions (Minnesota consent order, Iowa AG suit, Illinois class action). Allegations only; CoinFlip and Weiss may request an administrative hearing. (pending); AG Catherine L. Hanaway sued GPD Holdings LLC d/b/a CoinFlip in the Circuit Court of Jasper County under the Missouri Merchandising Practices Act, alleging the operator profited from elder fraud and concealed transaction fees of up to 21.9% behind a prominently displayed $2.99 'Network Fee,' citing three named victims. The petition seeks restitution, civil penalties, punitive damages, and injunctive relief. It followed the AG's January 27, 2026 Civil Investigative Demand. CoinFlip publicly called the lawsuit 'meritless.' (pending); AG Brenna Bird filed lawsuit in Polk County District Court alleging violations of Iowa Consumer Fraud Act. Allegations include: hidden 21% transaction fees, failure to prevent $11.2M in scam transactions, majority of victims over age 60. State seeking permanent Iowa ban, full refunds to scam victims, and fee caps. CoinFlip stated it 'doesn't believe these allegations reflect or align with CoinFlip's strong compliance and consumer protection practices.' (pending); AG Catherine Hanaway issued CID to CoinFlip as part of statewide investigation into Bitcoin ATM operators. Investigation focuses on fee disclosure practices and anti-fraud policies. Superseded by the May 20, 2026 lawsuit. (superseded); Consent order related to money transmission operations (resolved); DOB consent order regarding compliance matters (resolved); Investigation found 94.92% of Iowa transactions through CoinFlip ATMs since Oct 2023 were scam-related. $11.2 million in consumer losses documented over 3 years - the highest of any operator investigated.; Data breach affecting 36,646 customers disclosed after employee email compromised via social engineering (Aug 7, 2023). Exposed SSNs, driver's licenses, passport numbers, and home addresses. Class action settled for $475,000 (up to $5,000/claim). Breach data creates structural vulnerability for recovery scam targeting of CoinFlip's customer base..