Missouri sues CoinFlip over alleged crypto ATM scams

Missouri sues CoinFlip, seeking $1.8M in penalties for allegedly enabling scams via crypto ATMs, mainly affecting seniors and veterans, and aims to stop its operations in the state.

Missouri has filed a lawsuit against GPD Holdings, the parent company of crypto ATM operator CoinFlip, alleging the company enabled scams through its ATMs and profited from these schemes. The state seeks up to $1,826,000 in civil penalties for violations of the Missouri Merchandising Practices Act, claiming CoinFlip's machines facilitated fraud that primarily targeted seniors and veterans. The lawsuit, filed in the Circuit Court of Jasper County, also aims to halt CoinFlip's operations in Missouri and secure restitution for affected consumers. CoinFlip currently operates 136 ATMs in Missouri and over 4,200 nationwide. This case is part of a broader investigation into crypto ATM companies, including Bitcoin Depot, which recently filed for bankruptcy. Prosecutors allege CoinFlip failed to disclose high transaction fees and allowed scammers to exploit its services, resulting in significant financial losses for victims.