The California Department of Financial Protection and Innovation (DFPI) issued a consent order against GPD Holdings LLC, operating as CoinFlip, on November 4, 2026. The regulator mandates that the company pay approximately $5.16 million due to operational failures within its crypto kiosk network.
The total penalty includes at least $4,811,483 in restitution for 20 identified scam victims. Additionally, the company must pay $351,530 in disgorgement for excessive fees collected from customers. The order follows findings of inadequate anti-money laundering measures since 2021.
Regulators identified that CoinFlip exceeded the state's daily transaction limit of $1,000 per customer starting in 2024. Furthermore, the company began charging excessive fees in 2025. While CoinFlip is not accused of directly facilitating scams, the DFPI cited weak customer identification and transaction monitoring as factors that allowed third-party fraud.
Under the terms of the order, CoinFlip must cease unlawful practices and implement operational changes under ongoing DFPI supervision. This action follows similar regulatory measures taken against other kiosk operators, including Hermes Bitcoin and RockItCoin, highlighting a focus on consumer restitution within the industry.
