Missouri AG Files Suit Against Coinflip, Targets Over 140 Bitcoin ATM Kiosks in the State

Missouri Sues Coinflip for Hiding 21.9% Fees and Allegedly Enabling Crypto Scams Statewide

The suit was filed successful the Circuit Court of Jasper County, Missouri’s 29th Judicial Circuit. It names Coinflip, which claims to run the world’s largest web of cryptocurrency ATMs by transaction volume, with much than 5,500 bitcoin automated teller machines (ATMs) crossed the United States and respective different countries.

As of precocious 2025, the institution ran much than 140 kiosks successful Missouri, placed successful convenience stores, liquor stores, gas stations, and vape shops. Hanaway’s bureau launched a statewide probe successful December 2025, issuing Civil Investigative Demands to 5 crypto ATM operators, including Coinflip, to analyse anti-fraud policies and interest disclosures. This suit is the nonstop effect of that investigation.

“Coinflip has go the getaway car for fiscal predators targeting Missouri residents,” Hanaway states successful the filing. “While scammers instrumentality the bulk of the victims’ money, Coinflip takes a ample chopped from each transaction and has hidden conscionable however ample that chopped truly is.”

The ailment details 3 unfortunate cases. An 80-year-old seasoned mislaid betwixt $180,000 and $200,000 betwixt September 2025 and March 2026 to a scammer utilizing the sanction “Selina Lee,” who directed him to deposit currency into Coinflip machines portion posing arsenic an concern advisor.

Image source: Missouri AG Catherine Hanaway’s lawsuit

He sold his vehicle, drained concern accounts, and astir mislaid his apartment. A 2nd unfortunate deposited $1,000 astatine a vape store kiosk aft a caller impersonating a Jefferson County sheriff’s lawman told her she faced apprehension warrants for missing assemblage duty. Coinflip refunded lone $182.38 successful fees. A 3rd unfortunate deposited $900 astatine a instrumentality labeled “FDIC Police Monitored” aft a akin fake warrant scam. She reportedly recovered nothing, the filing notes.

The suit alleges Coinflip displayed lone a $2.99 level web interest connected its machines portion burying a abstracted transaction interest of up to 21.9% wrong its presumption of service. Under that structure, a Missouri nonmigratory depositing $100 successful currency would person astir $75.76 worthy of bitcoin. None of the 3 named victims callback immoderate wide disclosure of the afloat interest amount.

Federal Trade Commission information cited successful the ailment shows fraud losses astatine bitcoin ATMs accrued astir tenfold from 2020 to 2023. In the archetypal fractional of 2024 alone, reported losses topped $65 million. The median reported nonaccomplishment per transaction is $10,000. Reported losses by adults implicit 60 person risen much than twentyfold since 2020.

The ailment argues Coinflip had the tools to place and halt fraudulent transactions but chose not to usage them. The institution has entree to Elliptic blockchain analytics bundle susceptible of flagging suspicious wallet activity, and each kiosk is equipped with a remotely accessible video camera.

The suit alleges Coinflip’s interior information from 2021 showed 99.64% of transactions progressive purchases alternatively than sales, a signifier accordant with scam-driven one-way deposits alternatively than morganatic crypto investing.

“Coinflip knows that its machines are routinely utilized to perpetrate devastating fiscal fraud,” Hanaway claimed.

The Missouri AG added:

“The institution profits from each 1 of those transactions. That is not a concern exemplary Missouri volition tolerate.”

Coinflip called the suit “meritless” and described it arsenic a “misguided attack” connected a licensed operator. The institution said it has advocated for stronger cryptocurrency kiosk regulations successful Missouri and astatine the national level, including 2025 Missouri authorities covering licensure and user protections, and said it plans to combat the suit. The determination quality work KMBC quoted Coinflip arsenic saying:

“The Attorney General is wrongfully targeting the institution that championed the instrumentality that protects Missourians from transgression scammers. Rather than discarded payer wealth pursuing a licensed and regulated company, the Attorney General’s bureau should investigate, drawback and halt those criminals preying connected Missourians crossed the fiscal services ecosystem. Coinflip volition combat this suit aggressively, and we look guardant to demonstrating that these allegations are baseless.”

Similar actions person been brought successful different states. Iowa antecedently sued Coinflip and different bitcoin ATM operators connected comparable grounds. The Missouri lawsuit fits a signifier of authorities attorneys wide utilizing user extortion statutes to people cryptocurrency kiosk companies arsenic fraud vectors.

The authorities seeks civilian penalties of up to $1,826,000, calculated astatine $1,000 per MMPA usurpation implicit 5 years, on with restitution for victims statewide and a tribunal bid suspending Coinflip’s Missouri operations until it implements effectual fraud-prevention measures.