Missouri AG sues CoinFlip operator over alleged crypto ATM fraud

The Missouri Attorney General's office has filed a lawsuit against GPD Holdings LLC, the operator of the CoinFlip cryptocurrency ATM network, alleging the company facilitated fraudulent transactions and charged excessive, hidden fees. The complaint was filed in Jasper County Circuit Court.

Attorney General Catherine Hanaway stated that cryptocurrency ATMs have become a primary tool for fraud, describing them as "the new getaway cars for fraud, whisking away innocent people's money to scammers, never to return." The lawsuit seeks restitution for affected consumers, civil penalties of up to $1.826 million, and an injunction to block CoinFlip from operating within the state.

State officials cited approximately 350 reported incidents tied to cryptocurrency ATMs in Missouri over the past two years, with total losses potentially reaching millions of dollars. The complaint alleges that scammers frequently direct victims to these kiosks to convert cash into cryptocurrency, which is then sent to external digital wallets. These transactions are non-refundable and difficult to trace, making recovery nearly impossible.

The filing details that these schemes disproportionately target elderly...