Missouri sued CoinFlip, accusing one of the largest U.S. crypto ATM operators of enabling scams, overcharging users, and violating consumer protection law.
Summary
- Missouri seeks up to $1.83 million in penalties and restitution from CoinFlip.
- The state says CoinFlip operated more than 140 crypto kiosks across Missouri.
- The lawsuit adds to a wider U.S. crackdown on crypto ATM fraud.
Missouri Attorney General Catherine Hanaway has sued CoinFlip, alleging the crypto ATM operator enabled fraud across the state and violated Missouri consumer protection law by profiting from scam-linked transactions through its kiosk network. According to the attorney general's office, the lawsuit was filed in Jasper County against GPD Holdings LLC, which does business as CoinFlip, and seeks penalties, restitution, and injunctive relief.
Hanaway said CoinFlip's machines were used by scammers to move victims' money quickly and irreversibly into cryptocurrency. "Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people's money to scammers, never to return," she said in the state's announcement.
The Missouri attorney general's office said CoinFlip operates more than 140 kiosks across the state, placing the machines in locations including gas stations, convenience stores, liquor stores and vape shops. The office alleged the company "knowingly facilitated fraudulent transactions and profited from them with convoluted and excessive fees through cryptocurrency kiosks."
Fees, penalties and state claims {#fees-penalties-and-state-claims}
Missouri is seeking up to $1,826,000 in civil penalties, based on $1,000 per alleged violation over the past five years, as well as restitution for consumers. The state also wants the court to block CoinFlip from continuing the alleged conduct in Missouri.
The case also zeroes in on fees. In its terms, CoinFlip says kiosk transaction fees "typically range from 4.99% to 21.90% of the total transaction amount," with a minimum blockchain network fee of $2.49, while also warning users that "ALL TRANSACTIONS ARE FINAL AND IRREVERSIBLE!!"
State officials said the lawsuit followed a December 2025 investigation into crypto ATM operators amid rising concern over scam activity and opaque pricing. Missouri's fusion centers have identified more than 350 crypto-related cases over the past two years involving a crypto ATM, according to the attorney general's office.
Wider pressure on crypto ATMs {#wider-pressure-on-crypto-atms}
The Missouri action comes as U.S. regulators and lawmakers intensify scrutiny of crypto ATMs. The Federal Trade Commission has said losses linked to Bitcoin ATM scams rose nearly tenfold from 2020 to 2023, with consumers reporting more than $65 million in losses in the first half of 2024 alone.
Other states have already moved against kiosk operators. In Iowa, Attorney General Brenna Bird sued CoinFlip and Bitcoin Depot, alleging Iowans lost at least $20.4 million through the companies' machines, while the District of Columbia also sued a crypto ATM operator over scam-related losses.
The pressure has also reached Capitol Hill. Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act, which would require stronger warnings, impose transaction limits for new users and require refunds in some fraud cases reported within 30 days.
The lawsuit lands as Bitcoin (BTC) remains the dominant asset used in many crypto ATM transactions, keeping physical crypto infrastructure in regulators' sights. In previous crypto.news coverage, reports on crypto ATM scams, state enforcement, and Bitcoin ATM regulation have tracked the expanding crackdown as authorities argue these machines have become a preferred payment rail for fraud.
