Missouri sues CoinFlip, accuses Bitcoin ATM operator of enabling scams; firm calls case “meritless”
Missouri Attorney General Catherine Hanaway on Wednesday filed suit against Bitcoin ATM operator CoinFlip, accusing the firm of “knowingly facilitating fraudulent transactions” and profiting from them through opaque, potentially predatory fees. Hanaway demanded the company be barred from operating in the “Show Me State” and is seeking $1.83 million in civil penalties, saying the kiosks have effectively become “getaway cars for fraud.”
CoinFlip, which already faces a major lawsuit in Iowa, pushed back sharply. A company spokesperson labeled Hanaway’s action “meritless,” describing it as a misguided attack on a licensed operator that has advocated for consumer-protection rules for crypto kiosks. “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 spokesperson said, adding that CoinFlip will defend itself in court.
What Missouri officials say
- State law enforcement analysts identified roughly 350 cases involving Bitcoin ATMs over the past two years.
- CoinFlip reportedly operates about 140 kiosks at locations like gas stations and vape shops across Missouri; the state hosts 429 Bitcoin ATMs in total, according to Coin ATM Radar.
- Hanaway framed the suit as part of a broader crackdown to protect seniors, who are increasingly targeted by impersonation and tech-support crypto scams. She pledged to “use every tool to flush out the cowardly scammers hiding behind screens and hold them accountable.”
The wider picture: scams, regulation, and industry strain
- Scams targeting elderly Americans have surged, often involving callers impersonating officials or tech workers to coerce victims into sending crypto. One flagged scheme in Massachusetts used a threat of arrest for “missed jury duty.”
- Americans reported $389 million in losses tied to such crypto scams last year, per FBI data.
- Some states have gone further: Tennessee has banned Bitcoin ATMs entirely.
- The litigation climate is already taking a toll on operators. Earlier this week Bitcoin Depot — another large kiosk operator — filed for Chapter 11 bankruptcy, citing “increased litigation costs,” and shuttered its network of more than 9,000 machines.
Why it matters
The case highlights a deepening regulatory and legal battleground over the role of cash-to-crypto kiosks in facilitating fraud. Regulators say tougher enforcement is needed to protect vulnerable consumers; operators argue that compliant companies are being unfairly targeted while bad actors remain at large. The outcome of Missouri’s suit — and related litigation around the country — could reshape where and how Bitcoin ATMs operate, and what responsibilities kiosk operators must meet to prevent fraud.
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