Missouri has filed a lawsuit against crypto ATM operator GPD Holdings LLC, which does business as CoinFlip, accusing the company of enabling fraudulent cryptocurrency transactions and charging poorly disclosed fees through its kiosk network.
Attorney General Catherine Hanaway filed the case on May 21, alleging CoinFlip violated the Missouri Merchandising Practices Act by allowing scammers to use its Bitcoin ATMs to move stolen funds quickly and with little chance of recovery.
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
The lawsuit looks to stop CoinFlip from operating in Missouri, secure restitution for affected consumers, and impose civil penalties of up to $1.826 million tied to alleged violations over the past five years.
State targets crypto ATM fraud risks
According to the attorney general’s office, the case focuses on scam activity involving cryptocurrency ATMs that collect money from victims under false pretences. Officials said scammers often pressure victims into withdrawing cash and depositing it into Bitcoin kiosks because crypto transactions are difficult to reverse or trace once completed.
Hanaway described crypto ATMs as “the new getaway cars for fraud,” adding that older residents and veterans were among the groups most exposed to these schemes.
State officials also warned consumers to watch for signs of fraud, including urgent payment requests, threats of legal trouble, demands for secrecy, and instructions to use Bitcoin ATMs.
Investigation followed rising consumer complaints
The lawsuit follows a statewide investigation launched in December 2025 into crypto ATM operators over alleged hidden fees and deceptive transaction charges.
Missouri authorities said the Missouri State Highway Patrol’s Missouri Information Analysis Centre and the St. Louis Fusion Centre linked around 350 crypto-related cases in the past two years to cryptocurrency ATMs.
The attorney general’s office also cited Federal Trade Commission data showing losses tied to crypto ATM fraud increased nearly tenfold between 2020 and 2023.
CoinFlip’s ATM locator lists more than 130 kiosk locations across Missouri, including St. Louis, Kansas City, Columbia, and Springfield.
Crypto ATM industry faces growing pressure
The lawsuit adds to the increasing scrutiny facing the crypto ATM industry across the United States as regulators and law enforcement agencies tighten oversight around fraud prevention and compliance controls. Bitcoin ATM operator Bitcoin Depot recently filed for voluntary Chapter 11 bankruptcy protection in the United States, marking a major setback for one of the largest crypto ATM providers globally.
CoinFlip has published scam awareness materials warning users that cryptocurrency transactions are irreversible and may lead to losses if tied to fraud. The company’s terms also caution users about scams involving digital assets.
The Missouri case will now test whether those warnings and internal safeguards were sufficient under state consumer protection laws.
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