Key Takeaways:
Missouri’s Attorney General has filed a lawsuit against cryptocurrency ATM operator CoinFlip, accusing the company of knowingly facilitating fraud and seeking up to $1.8 million in penalties. The suit, filed Wednesday in Jasper County, demands the company cease operations at its more than 140 kiosks in the state.
"It isn’t crypto that’s inherently bad. It’s these ATM scams and all the fraudsters who use them as the mechanism to transmit your money," Missouri Attorney General Catherine Hanaway said at a press conference. Hanaway’s office is asking the court to declare that CoinFlip’s business practices violate the Missouri Merchandising Practices Act.
The lawsuit alleges GPD Holdings LLC, which does business as CoinFlip, profits from scams through "convoluted and excessive fees" that can reach as high as 21.9 percent of a transaction's value. The filing cites Federal Trade Commission data showing that fraud losses at crypto ATMs have seen a near tenfold increase from 2020 to 2023, with the median loss from such scams nationally hovering around $10,000.
This legal action is part of a wider regulatory clampdown on crypto ATM operators across the United States and follows a statewide investigation launched by the Attorney General's office in December 2025. The pressure on the sector has been mounting, with Bitcoin Depot, another major ATM operator, recently filing for Chapter 11 bankruptcy amid its own legal and regulatory challenges.
CoinFlip vehemently denies the allegations, dismissing the lawsuit as a "misguided attack." In a statement, the company asserted that it has been a proponent of consumer protection laws and was instrumental in the passage of Missouri's 2025 cryptocurrency kiosk legislation.
"The Attorney General is wrongfully targeting the company that championed the law that protects Missourians from criminal scammers," CoinFlip's statement read. "Rather than waste taxpayer money pursuing a licensed and regulated company, the Attorney General’s office should investigate, catch and stop those criminals preying on Missourians." The company has pledged to "fight this lawsuit aggressively."
The suit seeks restitution for victims, civil penalties of $1,000 per violation over the last five years, and an injunction to stop CoinFlip from operating in Missouri until it implements more robust fraud-prevention measures. The Attorney General's office has encouraged any Missourians who believe they have been harmed by a cryptocurrency kiosk to file a complaint.
This article is for informational purposes only and does not constitute investment advice.
