Missouri Attorney General Catherine Hanaway has filed a lawsuit against crypto ATM operator CoinFlip, accusing the company of enabling fraudulent transactions and profiting from scam victims through excessive and poorly disclosed fees. The lawsuit claims the company knowingly allowed criminals to exploit cryptocurrency kiosks across the state.
More Than 140 Crypto Kiosks Under Scrutiny
According to the complaint, CoinFlip operates over 140 cryptocurrency ATMs throughout Missouri in locations such as gas stations, liquor stores, vape shops, and convenience stores. Officials argue these machines have become a major tool for scammers because crypto payments are difficult to trace and nearly impossible to reverse once completed.
Seniors and Vulnerable Residents Reportedly Targeted
The Attorney General’s office highlighted several alleged victims, including seniors and vulnerable individuals who were convinced to deposit large amounts of cash into Bitcoin ATMs after receiving fake emergency calls, investment offers, or threats involving arrest warrants. One reported victim allegedly lost nearly $200,000 through a CoinFlip machine.
Lawsuit Seeks Financial Penalties and Consumer Restitution
Missouri officials are seeking civil penalties, restitution for victims, and a court order that could prevent CoinFlip from continuing operations in the state unless stronger fraud-prevention measures are introduced. The lawsuit also accuses the company of charging transaction fees that allegedly reached as high as 21.9% in some cases.
CoinFlip Rejects Allegations
CoinFlip has strongly denied the accusations, calling the lawsuit “meritless” and arguing that the company has actively supported cryptocurrency consumer-protection laws. The company says it already follows compliance rules and cannot be held responsible for scammers manipulating customers into making transactions.
Crypto ATM Scams Rising Across the United States
The Missouri case comes as regulators across the United States intensify scrutiny of cryptocurrency ATM operators. Federal data shows crypto ATM scams have surged in recent years, with hundreds of millions of dollars reportedly lost nationwide. Authorities say scammers increasingly use Bitcoin kiosks because transactions are fast, irreversible, and difficult for law enforcement to recover.
