In early February 2022, Coyle was accused of making Sinophobic remarks on 1 February to Henry Dyer, a political reporter of British-Chinese origin. It was reported Coyle said to Dyer that he could tell "from how you look like you've been giving renminbi to Barry Gardiner", following the latter's receiving funds from an agent of the Chinese state. According to Dyer, while discussing Gardiner, Coyle also said he had been funded by "Fu Manchu". Consequently, on 11 February, Coyle had the Labour whip suspended pending an investigation and was banned from all bars on the Westminster estate.

Dyer claimed Coyle refused to apologise when he confronted him, with Coyle asking him, "if it was just the case that [Dyer] was being over-sensitive". After the incident was made public and reported to the Speaker of the House, Coyle apologised for his "insensitive comments" and said he would be cooperating with the investigation. Coyle faced calls to resign.

In July 2022, Coyle claimed he drank a lot because working as a MP is stressful.

In March 2023, Coyle was found to have breached Parliament's bullying and harassment policy and was suspended from the Commons for five days. Coyle had the Labour whip withdrawn since February 2022, and Labour faces a decision over whether to lift the suspension or not.

The whip was restored in May 2023, after Coyle demonstrated commitment to sobriety.