Missouri AG sues CoinFlip operator over crypto ATM scams

Missouri Attorney General Catherine Hanaway filed a lawsuit in Jasper County Circuit Court against GPD Holdings LLC, operator of CoinFlip cryptocurrency ATMs. The complaint alleges the kiosks facilitated scam-related transactions and charged conversion fees as high as 21.9%. The suit seeks consumer restitution, civil penalties up to $1.826 million and an injunction to bar the company from operating in Missouri.

The filing states roughly 350 crypto ATM-related incidents were reported in Missouri over the past two years, with losses tied to CoinFlip and similar kiosks potentially reaching into the millions. The complaint describes transactions at the machines as nonrefundable and difficult to trace, factors it says make the kiosks a common endpoint for fraud.

According to the complaint, fraudsters instruct victims to convert cash into cryptocurrency at a kiosk and then transfer the funds to external wallets controlled by third parties. The filing says those tactics disproportionately affect elderly consumers on fixed incomes and cites a national increase in senior losses using crypto payment methods of more than 20-fold since 2020.

The lawsuit alleges GPD Holdings profited from the transactions processed through its kiosks. The complaint contends the company embedded fees in its pricing structure and charged up to 21.9% on each conversion, and that fees were collected even when transactions were later linked to scams.

CoinFlip was founded in 2015 and operates more than 140 kiosks across Missouri. The filing notes the machines are placed in convenience stores, liquor stores, vape shops and gas stations.

Hanaway wrote in a statement, ‘Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people's money to scammers, never to return. As Attorney General, I'll use every tool to flush out the cowardly scammers hiding behind screens and hold them accountable.'

The complaint names GPD Holdings LLC as the operator of the CoinFlip kiosks and alleges violations of state consumer protection laws. It asks the court to order restitution for harmed consumers, impose penalties and issue an injunction to stop the company from operating in the state.