Missouri Attorney General Catherine Hanaway has filed a lawsuit against crypto ATM operator CoinFlip, accusing the company of facilitating fraudulent transactions and charging excessive fees through its cryptocurrency kiosks across the state.
Key Takeaways
- Missouri sued CoinFlip over allegations tied to crypto ATM scams and hidden fees.
- The state is seeking up to $1.826 million in civil penalties and a ban on CoinFlip operations in Missouri.
- Officials say crypto ATMs have become a major tool for scammers targeting seniors and vulnerable consumers.
- CoinFlip rejected the allegations and called the lawsuit “meritless.”
What Happened?
Missouri Attorney General Catherine Hanaway announced legal action against GPD Holdings LLC, the operator of CoinFlip, claiming the company knowingly enabled fraudulent cryptocurrency transactions through its ATM network.
The lawsuit alleges CoinFlip profited from scam related activity while charging consumers high and poorly disclosed fees on crypto purchases made through its kiosks.
⚖️ LEGAL: Missouri is suing #crypto ATM operator #CoinFlip, accusing the company of “knowingly facilitating fraudulent transactions and profiting from them.”
— Coinpaper (@coinpapercom) May 21, 2026
State officials say the alleged scams impacted vulnerable groups including seniors and veterans. pic.twitter.com/WPZBA2W1tA
Missouri Targets CoinFlip Over Crypto ATM Practices
According to the complaint filed in Jasper County Circuit Court, CoinFlip operates more than 140 cryptocurrency kiosks across Missouri and over 4,200 nationwide. The machines are commonly located inside convenience stores, gas stations, liquor stores, and vape shops.
State officials claim these crypto ATMs have increasingly become tools used by scammers to steal money from consumers. Victims are often instructed to deposit cash into a crypto ATM and send the cryptocurrency to external wallets controlled by fraudsters. Because crypto transactions are irreversible and difficult to trace, recovering stolen funds is extremely difficult.
Attorney General Hanaway said in an official statement:
The Attorney General’s office launched a statewide investigation into cryptocurrency kiosk operators in December following growing concerns about fraud cases tied to crypto ATMs. The investigation also included Bitcoin Depot, another kiosk operator that recently filed for Chapter 11 bankruptcy protection.
Missouri Reports Hundreds of Crypto ATM Cases
According to data cited in the lawsuit, the Missouri State Highway Patrol’s Missouri Information Analysis Center and the St. Louis Fusion Center identified more than 350 crypto ATM related cases in the past two years alone.
The complaint also references findings from the Federal Trade Commission, which reported that fraud losses tied to crypto ATMs increased nearly tenfold between 2020 and 2023. In the first half of 2024 alone, reported losses linked to crypto ATM scams exceeded $65 million nationwide.
Officials say elderly consumers have been particularly vulnerable. The FTC found that losses involving seniors using cryptocurrency as a payment method increased more than 20 fold since 2020.
The lawsuit further alleges that CoinFlip charged fees as high as 21.9% per transaction, regardless of whether the transactions were later linked to scams.
CoinFlip Rejects Allegations
CoinFlip strongly denied the accusations and said the lawsuit unfairly targets a company that has actively supported stronger consumer protection laws.
In a statement shared with media outlets, a CoinFlip spokesperson said:
The company also stated that it played a major role in supporting Missouri’s 2025 cryptocurrency kiosk consumer protection legislation. According to CoinFlip, the legislation introduced stricter licensing requirements, stronger compliance standards, and additional consumer protection measures designed to combat scams.
Despite those claims, Missouri is asking the court to block CoinFlip from operating in the state, order restitution for consumers, and impose civil penalties totaling up to $1.826 million.
CoinLaw’s Takeaway
In my experience, crypto ATM scams have become one of the fastest growing fraud problems in the digital asset industry. These kiosks make cryptocurrency accessible, but they also create an easy path for scammers to pressure victims into sending irreversible payments within minutes. I found Missouri’s lawsuit significant because regulators are no longer focusing only on scammers themselves. They are now targeting the infrastructure providers that allegedly failed to stop suspicious activity. This case could influence how other states regulate crypto ATM operators moving forward.
