Missouri Sues CoinFlip Over Alleged Crypto ATM Scams

Highlights:

• CoinFlip faces a Missouri lawsuit over alleged scam transactions and high kiosk fees.
• Missouri links about 350 crypto ATM cases to kiosks over two years.
• The state seeks restitution, penalties, and a possible operating ban.

Missouri Attorney General Catherine Hanaway has filed a lawsuit against GPD Holdings LLC (CoinFlip) for an alleged crypto ATM scam. The company orchestrated fraud-related transactions via kiosks set up across Missouri, according to the filing. Hanaway also alleges that the operator was profiting from high fees while residents were unable to recover funds.

Hanaway said Bitcoin and crypto ATMs act as “getaway cars for fraud” because scammers move money fast. Her office said the machines allow cash deposits that convert into cryptocurrency. However, those transfers often go to wallets controlled by unknown third parties.

The lawsuit asks the court to stop the company from operating in Missouri. It also seeks restitution for affected consumers. Moreover, the state wants civil penalties of $1,000 per violation. The total penalty request reaches up to $1.826 million for alleged violations over five years.

Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return.

My office has filed suit against the crypto ATM network CoinFlip for facilitating fraudulent transactions and profiting from them with convoluted and… pic.twitter.com/wm9Mn6jcaO

— Attorney General Catherine L. Hanaway (@AGCHanaway) May 20, 2026

Missouri Officials’ Probe Focuses on Senior Losses and Costly ATM Charges

The attorney general’s office said the case followed a statewide probe launched in December last year. Investigators reviewed crypto kiosk companies after reports tied Bitcoin ATMs to hidden charges and scam activity. According to state agencies, 350 crypto cases over two years involved a cryptocurrency ATM.

The complaint calls attention to losses suffered by older residents and other vulnerable communities. It references an 80-year-old veteran who sent large sums after being encouraged by a scammer to invest in crypto. Another resident deposited cash after the calls, alleging she had warrants issued for missing jury duty.

According to state officials, these schemes often use urgency, of course, secrecy, and fake legal claims. Victims then withdraw cash and send it via kiosks before they know they were receiving calls from fraudsters. The state, therefore, claims that crypto ATMs present a quick route from fear to financial loss.

Fees form another major part of the complaint. The filing says kiosk transactions can carry charges as high as 21.9%. It also says some fee details sit inside the terms documents instead of clear ATM screens. As a result, consumers may receive far less cryptocurrency than the cash amount they deposit.

Crypto ATM Pressure Grows Across More States

CoinFlip markets itself as the largest crypto ATM network by transaction volume. Its kiosks sit in convenience stores, liquor stores, vape shops, and gas stations. Missouri officials said the firm operates more than 140 machines in the state. Its location listings also show machines in St. Louis, Columbia, Kansas City, and Springfield.

According to the Federal Trade Commission (FTC), losses from fraud linked to crypto ATMs have skyrocketed. Since 2020, senior losses in crypto payment scams have climbed over twentyfold. As a result, state and local officials now view kiosk networks as a growing consumer protection issue. 

Moreover, the lawsuit also comes as the broader crypto ATM industry faces heavier scrutiny. On May 18, Atlanta-based company Bitcoin Depot filed for Chapter 11 bankruptcy after legal and regulatory pressure hit its business.

🚨BREAKING: One of the largest Bitcoin ATM operators just filed for BANKRUPTCY.

Bitcoin Depot has started a voluntary Chapter 11 process to wind down operations and sell its assets.

The company says its current business model became “unsustainable” due to tougher state… pic.twitter.com/f9LjzfGOkv

— Coin Bureau (@coinbureau) May 18, 2026