The state wants to block CoinFlip from operating in Missouri, impose penalties of up to $1.826 million, and secure restitution for affected consumers. The lawsuit is also part of a wider crackdown on crypto ATM operators across the United States. Missouri Sues CoinFlip Missouri authorities filed a lawsuit against crypto ATM operator CoinFlip, accusing the company of knowingly enabling fraudulent transactions and profiting from scams that allegedly targeted vulnerable residents, including seniors and military veterans. The lawsuit was announced by the office of Missouri Attorney General Catherine Hanaway. (Source: Missouri Attorney General) According to the Attorney General’s office, the lawsuit was filed against GPD Holdings, which operates under the CoinFlip brand. Missouri officials launched an investigation into several crypto ATM operators in December after receiving complaints tied to fraudulent schemes involving digital currency kiosks. Among the companies investigated was Bitcoin Depot, another major operator that recently filed for bankruptcy protection. State officials claim that CoinFlip’s operations violated the Missouri Merchandising Practices Act by facilitating transactions connected to scams. Authorities are asking the court to block CoinFlip from operating in Missouri and impose civil penalties of up to $1.826 million. In addition to this, the lawsuit seeks restitution for consumers who allegedly lost money through fraudulent crypto ATM transactions over the past five years. (Source: coinflip.tech) CoinFlip currently operates 136 cryptocurrency kiosks in Missouri and more than 4,200 nationwide, according to information listed on the company’s website . Crypto ATMs allow users to buy or sometimes sell cryptocurrencies like Bitcoin using cash or debit cards. While the technology has become popular for providing quick access to digital assets, regulators and law enforcement agencies have warned that scammers are exploiting these machines to steal money from unsuspecting victims. The lawsuit against CoinFlip is part of a broader crackdown on crypto ATM businesses in several US states and municipalities. Over the past few months, lawmakers and regulators introduced restrictions, tighter compliance rules, and in some cases outright bans on crypto kiosks due to concerns over fraud and consumer protection. Minnesota lawmakers are also now considering legislation that could ban crypto kiosks after a rise in scam reports. Interestingly, Bitcoin Depot also faced mounting legal and financial pressure. In a filing that was submitted to the US Securities and Exchange Commission earlier this month, the company warned that there was “substantial doubt” about its ability to continue operating due to ongoing litigation and legal liabilities. Just days later, Bitcoin Depot filed for Chapter 11 bankruptcy protection in Texas.
