{"id":72878,"date":"2026-05-21T18:38:45","date_gmt":"2026-05-21T18:38:45","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/missouri-ag-files-suit-against-coinflip-targets-over-140-bitcoin-atm-kiosks-in-the-state\/"},"modified":"2026-05-21T18:38:45","modified_gmt":"2026-05-21T18:38:45","slug":"missouri-ag-files-suit-against-coinflip-targets-over-140-bitcoin-atm-kiosks-in-the-state","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/missouri-ag-files-suit-against-coinflip-targets-over-140-bitcoin-atm-kiosks-in-the-state\/","title":{"rendered":"Missouri AG Files Suit Against Coinflip, Targets Over 140 Bitcoin ATM Kiosks in the State"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Missouri AG Catherine Hanaway sued Coinflip on May 20, 2026, seeking up to $1,826,000 in civil penalties under the MMPA.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Coinflip\u2019s 140-plus Missouri BTMs charge fees up to 21.9%, with one 80-year-old veteran losing up to $200,000 in a single scam.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The lawsuit seeks a court injunction halting Coinflip operations in Missouri until stronger fraud-prevention measures are in place.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Missouri Sues Coinflip for Hiding 21.9% Fees and Allegedly Enabling <span>Crypto<\/span> Scams Statewide<\/h2>\n<p>The <a href=\"https:\/\/ago.mo.gov\/wp-content\/uploads\/Coinflip-Petition-Final.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">suit<\/a> was filed in the Circuit Court of Jasper County, Missouri\u2019s 29th Judicial Circuit. It names Coinflip, which claims to operate the world\u2019s largest network of <span>cryptocurrency<\/span> ATMs by transaction <span>volume<\/span>, with more than 5,500 <span>bitcoin<\/span> automated teller machines (ATMs) across the United States and several other countries.<\/p>\n<p>As of late 2025, the company ran more than 140 kiosks in Missouri, placed in convenience stores, liquor stores, <span>gas<\/span> stations, and vape shops. Hanaway\u2019s office launched a statewide investigation in December 2025, issuing Civil Investigative Demands to five <span>crypto<\/span> ATM operators, including Coinflip, to examine anti-fraud policies and fee disclosures. This lawsuit is the direct result of that investigation.<\/p>\n<p>\u201cCoinflip has become the getaway car for financial predators targeting Missouri residents,\u201d Hanaway states in the filing. \u201cWhile scammers take the bulk of the victims\u2019 money, Coinflip takes a large cut from every transaction and has hidden just how large that cut really is.\u201d<\/p>\n<p>The complaint details three victim cases. An 80-year-old veteran lost between $180,000 and $200,000 between September 2025 and March 2026 to a scammer using the name \u201cSelina Lee,\u201d who directed him to deposit cash into Coinflip machines while posing as an investment advisor.<\/p>\n<figure id=\"attachment_815932\" aria-describedby=\"caption-attachment-815932\" style=\"width:2008px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-815932\" class=\"wp-caption-text\">Image source: Missouri AG Catherine Hanaway\u2019s lawsuit<\/figcaption><\/figure>\n<p>He sold his vehicle, drained investment accounts, and nearly lost his apartment. A second victim deposited $1,000 at a vape shop kiosk after a caller impersonating a Jefferson County sheriff\u2019s deputy told her she faced arrest warrants for missing jury duty. Coinflip refunded only $182.38 in fees. A third victim deposited $900 at a machine labeled \u201cFDIC Police Monitored\u201d after a similar fake warrant scam. She reportedly recovered nothing, the filing notes.<\/p>\n<p>The lawsuit alleges Coinflip displayed only a $2.99 flat network fee on its machines while burying a separate transaction fee of up to 21.9% inside its terms of service. Under that structure, a Missouri resident depositing $100 in cash would receive roughly $75.76 worth of <span>bitcoin<\/span>. None of the three named victims recall any clear disclosure of the full fee amount.<\/p>\n<p>Federal Trade Commission data cited in the complaint shows fraud losses at <span>bitcoin<\/span> ATMs increased nearly tenfold from 2020 to 2023. In the first half of 2024 alone, reported losses topped $65 million. The median reported loss per transaction is $10,000. Reported losses by adults over 60 have risen more than twentyfold since 2020.<\/p>\n<p>The complaint argues Coinflip had the tools to identify and stop fraudulent transactions but chose not to use them. The company has access to <a href=\"https:\/\/news.bitcoin.com\/elliptic-raises-120-million-in-series-d-led-by-one-peak-and-nasdaq\/\">Elliptic<\/a> <span>blockchain<\/span> analytics software capable of flagging suspicious wallet activity, and each kiosk is equipped with a remotely accessible video camera.<\/p>\n<p>The suit alleges Coinflip\u2019s internal data from 2021 showed 99.64% of transactions involved purchases rather than sales, a pattern consistent with scam-driven one-way deposits rather than legitimate <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> investing.<\/p>\n<p>\u201cCoinflip knows that its machines are routinely used to perpetrate devastating financial fraud,\u201d Hanaway claimed.<\/p>\n<p>The Missouri AG added:<\/p>\n<blockquote>\n<p>\u201cThe company profits from every one of those transactions. That is not a business model Missouri will tolerate.\u201d<\/p>\n<\/blockquote>\n<p>Coinflip called the lawsuit \u201cmeritless\u201d and described it as a \u201cmisguided attack\u201d on a licensed operator. The company said it has advocated for stronger <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">cryptocurrency<\/a> kiosk regulations in Missouri and at the federal level, including 2025 Missouri legislation covering licensure and consumer protections, and said it plans to fight the suit. The regional news publication KMBC <a href=\"https:\/\/www.kmbc.com\/article\/missouri-attorney-general-sues-crypto-atm-company\/71366024\" target=\"_blank\" rel=\"noopener noreferrer\">quoted<\/a> Coinflip as saying:<\/p>\n<blockquote>\n<p>\u201cThe Attorney General is wrongfully targeting the company that championed the law that protects Missourians from criminal scammers. Rather than waste taxpayer money pursuing a licensed and regulated company, the Attorney General\u2019s office should investigate, catch and stop those criminals preying on Missourians across the financial services ecosystem. Coinflip will fight this lawsuit aggressively, and we look forward to demonstrating that these allegations are baseless.\u201d<\/p>\n<\/blockquote>\n<p>Similar actions have been brought in other states. Iowa previously sued Coinflip and other <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> ATM operators on comparable grounds. The Missouri case fits a pattern of state attorneys general using consumer protection statutes to target <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">cryptocurrency<\/a> kiosk companies as fraud vectors.<\/p>\n<p>The state seeks civil penalties of up to $1,826,000, calculated at $1,000 per MMPA violation over five years, along with restitution for victims statewide and a court order suspending Coinflip\u2019s Missouri operations until it implements effective fraud-prevention measures.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/missouri-ag-files-suit-against-coinflip-targets-over-140-bitcoin-atm-kiosks-in-the-state\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Missouri AG Catherine Hanaway sued Coinflip on May 20, 2026, seeking up to $1,826,000 in civil penalties under the MMPA. Coinflip\u2019s 140-plus Missouri BTMs charge fees up to 21.9%, with one 80-year-old veteran losing up to $200,000 in a single scam. The lawsuit seeks a court [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":72879,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72878"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72878"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72878\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72879"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}