Missouri Attorney General Catherine Hanaway
JEFFERSON CITY — Missouri Attorney General Catherine Hanaway announced that her office has filed suit against GPD Holdings LLC, doing business as CoinFlip, alleging the company knowingly facilitated fraudulent transactions through its cryptocurrency kiosks while profiting from excessive and inadequately disclosed fees.
The lawsuit, filed in Jasper Circuit Court, claims CoinFlip violated the Missouri Merchandising Practices Act by failing to prevent scam-related transactions at its Bitcoin ATMs and by concealing transaction fees that could reach nearly 22% of a transaction’s value.
“Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return,” Hanaway said in a statement. “As Attorney General, I’ll use every tool to flush out the cowardly scammers hiding behind screens and hold them accountable. My office will always prioritize protecting Missourians — especially our seniors and veterans.”
CoinFlip advertises itself as the “world’s largest network of cryptocurrency ATMs by transaction volume” and operates more than 140 kiosks across Missouri in convenience stores, liquor stores, vape shops and gas stations, according to the attorney general’s office.
The petition alleges CoinFlip publicly markets its kiosks as safe and equipped with fraud-prevention mechanisms, while scam transactions involving its machines continue to occur regularly in Missouri.
According to the lawsuit, cryptocurrency ATM scams have increased dramatically in recent years because cryptocurrency transactions are difficult to trace and irreversible.
The Federal Trade Commission reported that fraud losses involving crypto ATMs increased nearly tenfold from 2020 to 2023, with more than $65 million in reported losses during the first half of 2024 alone.
The lawsuit also cites FTC data showing reported fraud losses among seniors involving cryptocurrency scams have increased more than 20-fold since 2020.
The Missouri State Highway Patrol’s Missouri Information Analysis Center and the St. Louis Fusion Center identified more than 350 cryptocurrency-related cases involving crypto ATMs during the past two years, according to the attorney general’s office.
The state’s petition details several alleged scam incidents involving Missouri residents. One victim, identified in the filing as an 80-year-old veteran, allegedly lost between $180,000 and $200,000 after being persuaded by someone claiming to have made money through cryptocurrency investments.
The lawsuit states the victim sold his vehicle, withdrew money from legitimate investment accounts and nearly lost his apartment before ending communication with the scammer in March 2026.
The petition alleges the victim used CoinFlip ATMs to convert cash into Bitcoin and was never clearly informed of transaction fees.
The filing states the victim was unable to recover any of the funds and now survives on Social Security.
Another victim allegedly withdrew $1,000 after receiving a call from someone posing as a Jefferson Sheriff’s Office employee claiming she had missed jury duty and faced arrest warrants.
The woman was directed to deposit money into a CoinFlip ATM at a vape shop. According to the lawsuit, a vape shop employee warned her she was being scammed, but she still lost the money and later learned only $182.38 in transaction fees could potentially be refunded.
A third victim allegedly lost $900 after a caller posing as a Boone Sheriff’s Office employee directed her to a “police monitored” CoinFlip ATM to pay supposed warrant fees.
The attorney general’s office alleges CoinFlip’s internal records and policies demonstrate the company was aware its machines were frequently used for scams. The lawsuit states CoinFlip tracked “blacklist reported criminal and terrorist wallet addresses” and maintained policies related to identifying elder financial exploitation.
The petition further alleges CoinFlip failed to act on warning signs, such as multiple users sending cryptocurrency to the same wallet addresses and older customers using kiosks while speaking on the phone with scammers.
The suit also alleges CoinFlip concealed transaction fees by prominently displaying only a $2.99 “Network Fee” while burying larger transaction fees in its terms of service.
According to the petition, customers depositing $100 into a machine could receive only about $75.76 worth of Bitcoin after fees were deducted.
The attorney general’s office launched a statewide investigation into cryptocurrency kiosk operators in December 2025 amid concerns about deceptive fee structures and scams involving crypto ATMs.
The lawsuit asks the court to declare CoinFlip’s practices unlawful under the Missouri Merchandising Practices Act, permanently enjoin the company from operating in Missouri until fraud-prevention measures are implemented, and impose civil penalties of up to $1,826,000 for alleged violations over the past five years.
The state is also seeking restitution for consumers, including the victims identified in the lawsuit.
“Our mission is simple: protect Missourians’ hard-earned money and stop scammers in their tracks,” Hanaway said. “It’s not just Bitcoin ATMs; it’s all fraud, and we will go after any business taking advantage of vulnerable Missourians.”
The attorney general’s office urged Missourians who believe they have been harmed through the use of a cryptocurrency kiosk to contact local law enforcement, report the incident to the FBI’s Internet Crime Complaint Center and file a complaint with the attorney general’s office.
