Missouri Sues CoinFlip Over Crypto ATM Scam Losses and High Fees

TLDR

• Missouri files lawsuit against CoinFlip over crypto ATM scams and high fees.

• Case claims CoinFlip profited while scam victims lost millions statewide.

  

• Complaint highlights 350 reported crypto ATM fraud cases in Missouri.

• Lawsuit seeks $1.826M in penalties and an injunction on operations.

• Seniors targeted by scams form major portion of Missouri’s complaint.

Missouri has sued CoinFlip operator GPD Holdings LLC over alleged crypto ATM fraud risks and high transaction fees. The lawsuit targets consumer losses, kiosk practices, and scam-linked transactions across the state. The case adds pressure on crypto ATM operators as fraud complaints rise.

Missouri Lawsuit Targets CoinFlip

Missouri Attorney General Catherine Hanaway filed the complaint in Jasper County Circuit Court. The filing accuses GPD Holdings of enabling fraudulent crypto ATM transactions through CoinFlip machines. It also claims the company charged high fees during those transactions.

The state said residents reported about 350 crypto ATM-related cases over two years. Moreover, the complaint links some losses to CoinFlip and similar kiosk networks. Missouri officials said those losses could reach millions of dollars.

The lawsuit seeks restitution for affected consumers and civil penalties. It also asks for penalties of up to $1.826 million. Missouri wants an injunction that would block CoinFlip operations in the state.

Complaint Cites Scam Losses

The complaint says scammers often direct victims to crypto ATMs during fraud schemes. Then, victims convert cash into cryptocurrency and send funds to outside wallets. After that, the transactions become difficult to reverse or trace.

Missouri officials said crypto kiosks create risks because payments move fast. They also said scam victims often lose access to funds immediately. The machines can become a final step in fraud operations.

The filing says older residents face major exposure to these schemes. It points to rising senior losses involving crypto payment methods since 2020. Missouri said fraud groups often target people with fixed incomes and limited recovery options.

Fees and Kiosk Risks Face Scrutiny

CoinFlip launched in 2015 and promotes a large crypto ATM network. The company operates more than 140 kiosks across Missouri. These machines sit in gas stations, liquor stores, vape shops, and convenience stores.

The complaint says CoinFlip charged fees of up to 21.9% on conversions. It claims the company collected those fees even when scams later surfaced. Missouri argues the fee structure created profit from risky transaction activity.

The case also raises wider questions about crypto ATM oversight. State officials argue kiosk operators need stronger safeguards against fraud. The complaint focuses on CoinFlip’s Missouri activity and its alleged impact on consumers.

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