Attorney General Hanaway Files Suit Against Crypto ATM Network For Enabling Scams

JEFFERSON CITY, Mo. – Today, Missouri Attorney General Catherine Hanaway announced that her office has filed suit against GPD Holdings LLC (“CoinFlip”) for knowingly facilitating fraudulent transactions and profiting from them with convoluted and excessive fees through cryptocurrency kiosks (Bitcoin ATMs).

“Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return,” said Attorney General Hanaway. “As Attorney General, I’ll use every tool to flush out the cowardly scammers hiding behind screens and hold them accountable. My office will always prioritize protecting Missourians—especially our seniors and veterans.”

CoinFlip advertises itself as the “world’s largest network of cryptocurrency ATMs by transaction volume,” and is operating more than 140 kiosks in convenience stores, liquor stores, vape shops, and gas stations across Missouri. CoinFlip publicly states that its Bitcoin ATMs are safe and have fraud-prevention mechanisms, however, scam transactions at its Missouri Bitcoin ATMs continue to occur regularly.

These kiosks appear like a typical ATM, but allow consumers to transact in cryptocurrency, like Bitcoin, rather than U.S. dollars. However, unlike a typical ATM, transactions on a cryptocurrency kiosk are often accompanied by disproportionate and poorly disclosed fees. These transactions are nonrefundable and difficult to trace, making them a preferred method of payment for scammers to prey on vulnerable Missourians.

Cryptocurrency has surged as swindlers’ payment-method of choice in recent years because it is portable, difficult to trace, and irreversible. The Federal Trade Commission (FTC) reports that fraud losses at crypto ATMs are “skyrocketing”—increasing nearly tenfold from 2020 to 2023. In just the first half of 2024, reported fraud losses were more than $65 million. Since 2020, the FTC reports that fraud losses by seniors have increased over 20-fold in scams using cryptocurrency as the payment method.

According to the Missouri State Highway Patrol’s Missouri Information Analysis Center (MIAC) and the St. Louis Fusion Center, over the past two years, 350 crypto cases have involved a cryptocurrency ATM.

In December 2025, the Attorney General’s Office launched a statewide investigation into companies operating cryptocurrency kiosks due to national concerns of deceptive fee structures and use by bad actors to defraud consumers.

The Attorney General’s Office is asking the Court to declare that CoinFlip’s practices violate the Missouri Merchandising Practices Act; to enjoin CoinFlip from operating in Missouri; to impose civil penalties of $1,000 per violation over the past five years (up to $1,826,000); and to award restitution to consumers.

“Our mission is simple: protect Missourians’ hard-earned money and stop scammers in their tracks. It’s not just Bitcoin ATMs; it’s all fraud, and we will go after any business taking advantage of vulnerable Missourians,” continued Attorney General Hanaway.

Common Red Flags in Cryptocurrency Scams:

• You receive an unexpected call or text about your accounts, a delivery, or a law enforcement matter—often from a spoofed or unfamiliar number;
• The caller claims there is an urgent problem you didn’t know about and says you must pay immediately to avoid arrest, account closure, or penalties;
• You are told not to tell anyone—especially your bank, family, or law enforcement—because it is “confidential” or part of an “ongoing investigation;”
• The caller insists on staying on the line while you move money, log in to accounts, or complete banking transactions; and
• You are directed to withdraw or bring cash and deposit it into a cryptocurrency ATM, often while following step‑by‑step instructions from the caller.

Missourians who believe they have been harmed by or through the use of any cryptocurrency kiosk are encouraged to contact their local law enforcement agency, report the fraud to the FBI’s Internet Crime Complaint Center (IC3), and file a complaint at ago.mo.gov.

The full lawsuit filed in the Circuit Court of Jasper County can be read here.

The press release announcing the initial investigation into CoinFlip and four other crypto ATM companies can be read here.