Missouri Attorney General Catherine Hanaway has filed a lawsuit against CoinFlip, the operator of a crypto ATM network, alleging the company knowingly facilitated fraudulent transactions and profited from them through excessive fees at its kiosks across the state. According to reports from Spectrum News, the state is seeking civil penalties of up to $1.826 million and a court order blocking further operations in Missouri. The lawsuit follows a probe Hanaway opened in December 2025 into several crypto kiosk operators after reports of scams targeting Missouri residents. Hanaway stated that "Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people's money to scammers, never to return."
The Missouri AG revealed that over $7 million has been lost statewide due to fraudulent transactions facilitated through CoinFlip kiosks. As reported by Spectrum News, the AG's office listed three victims in its complaint against the crypto company. The most significant victim was an 80-year-old veteran who deposited roughly $200,000 into a CoinFlip machine with hopes of making an investment, but the money has since disappeared without recovery. Another victim was a young single mother who received a phone call leading her to believe she had a warrant out for missing jury duty, being told she would be arrested if she didn't immediately deposit money into a CoinFlip ATM. A third victim, who actually had a warrant out for her arrest, was solicited to deposit $9,000 but only sent $1,000 before realizing she was being duped.
According to Spectrum News, CoinFlip currently operates more than 140 kiosks located inside convenience stores, liquor stores, vape shops and gas stations across Missouri. The company's machines feature bright orange, green or blue branding and resemble standard ATMs, with some even featuring scam warning stickers underneath the screens. However, the AG reports that these kiosks feature disproportionate and poorly disclosed fees. "They claim it's a $3 fee," Hanaway said. "It could be up to $1,000. It's a big, big fee. It's a big, big scam." As reported by BeInCrypto, CoinFlip currently operates 136 kiosks in Missouri and 4,229 nationwide, with at least 40 ATMs in the Kansas City metro and surrounding areas according to the company's online map.
According to BeInCrypto, a CoinFlip spokesperson rejected the allegations and called the lawsuit "meritless," stating the company has actively lobbied for tougher consumer protection rules in Missouri and other states. The spokesperson emphasized that CoinFlip was a key force behind Missouri's 2025 cryptocurrency kiosk consumer protection legislation, working directly with state lawmakers to secure mandatory licensure, stronger compliance standards, and meaningful consumer protection requirements. The company stated it will fight the lawsuit aggressively and looks forward to demonstrating the allegations are baseless. CoinFlip calls itself the "world's largest network of cryptocurrency ATMs by transaction volume."
The same investigation that examined CoinFlip also looked at Bitcoin Depot, which filed for Chapter 11 bankruptcy this month. Missouri Highway Patrol data shows 350 crypto fraud cases over the past two years have involved one of these ATM machines, highlighting the widespread nature of the scam problem. The lawsuit is part of a broader trend of regulatory scrutiny targeting crypto ATM operators across multiple jurisdictions. Hanaway warned the public that these scams can include ransom requests for hacking into one's computer, as well as loved ones being abducted. The AG stated that "These crypto ATM machines have become the getaway car for fraudsters in Missouri." She hopes people will "wisen up to these tricks," warning that if anyone receives an urgent call saying they must deposit money into one of these machines immediately, "it's a scam. Simply, don't do it."
