Missouri Is Suing CoinFlip for Knowingly Facilitating Crypto ATM Fraud Against Seniors and Veterans

[nihalsari]

Missouri Attorney General Catherine Hanaway filed a lawsuit on Wednesday against GPD Holdings, the company behind cryptocurrency ATM operator CoinFlip, accusing it of knowingly facilitating fraudulent transactions and profiting from them. The state alleges that CoinFlip's practices violated the Missouri Merchandising Practices Act and that victims included seniors and veterans. The AG's office is asking the court to enjoin CoinFlip from operating in Missouri, impose civil penalties of $1,000 per violation over the past five years up to a maximum of $1.826 million, and award restitution to affected consumers. CoinFlip operates 136 crypto kiosks in Missouri and approximately 4,229 across the US, and had not responded to requests for comment at the time of publication.The lawsuit follows a probe Missouri launched in December into several crypto ATM companies, including Bitcoin Depot, which recently filed for Chapter 11 bankruptcy after disclosing it faced more than $20 million in legal judgments and ongoing litigation.

The CoinFlip action is the latest in a growing wave of state-level enforcement against crypto kiosk operators, with Tennessee passing legislation to restrict the technology, Minnesota weighing a ban following scam reports, and Indiana becoming the first state to ban the kiosks outright earlier this year. The pattern of regulatory pressure across multiple states reflects a coordinated effort by consumer protection authorities to hold crypto ATM operators accountable for the fraud facilitated through their networks rather than treating the machines as passive infrastructure with no liability for how they are used.

[lingriiddd]

Bitcoin Depot filed bankruptcy and CoinFlip got sued in the same week, rough week for the airport kiosk guys

[lingriiddd]

Indiana banned crypto ATMs meanwhile I didn't even know Indiana had crypto ATMs