The Texas Department of Banking has issued a consent order against GPD Holdings LLC, the Chicago-based operator behind CoinFlip, after determining that it engaged in unlicensed money transmission involving cryptocurrency with customers in Texas. The action follows an earlier directive in July 2023 requiring CoinFlip to cease such activities in the state due to licensing gaps.
Under the consent order, CoinFlip must pay more than $40,000 and is prohibited from processing further transactions until it secures the appropriate money-transmission license. The order notes that the company may apply for licensure in the future.
State regulators also disclosed that additional violations were found at an affiliated entity CoinFlip had merged with, which had been selling cryptocurrency online without authorization, effectively continuing unlicensed activities in Texas. CoinFlip had previously applied for a money-transmission license in May 2024, according to the regulator.
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