Missouri Sues CoinFlip, Seeks $1.8M Over Crypto ATM Fraud

Missouri Attorney General Catherine Hanaway filed a lawsuit against CoinFlip, the operator of a nationwide network of cryptocurrency ATMs, accusing the company of knowingly facilitating fraudulent transactions at its kiosks. The state seeks up to $1.826 million in civil penalties and a court order to bar CoinFlip from operating in Missouri.

The office opened an investigation in December into several crypto kiosk operators after reports that Missouri residents were targeted by scammers. The complaint alleges CoinFlip profited from those scams by charging high fees at its machines and allowing transactions tied to fraud to be completed.

CoinFlip lists 136 kiosks in Missouri and 4,229 nationwide on its locations page. The probe also examined other kiosk operators, including Bitcoin Depot, which filed for Chapter 11 bankruptcy this month.

Crypto ATMs, also called kiosks, let people buy or sell cryptocurrencies such as Bitcoin with cash at a terminal. Operators typically collect transaction fees and may require identity checks or set transaction limits. State and local regulators have scrutinized kiosks amid complaints that scammers use them to launder funds or quickly convert stolen money into crypto.

Hanaway described the kiosks as “the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return,” and said the penalties sought reflect alleged violations of state consumer protection and money-transmission laws.

A CoinFlip spokesperson called the lawsuit “meritless” and said the company has supported stronger consumer protections. The spokesperson noted CoinFlip worked with state lawmakers on Missouri’s 2025 cryptocurrency kiosk legislation that includes mandatory licensure and compliance standards, and that the company intends to challenge the lawsuit in court.

The case will proceed in state court, where a judge will determine whether the penalties will be imposed and whether CoinFlip may continue operating kiosks in Missouri.