Missouri Sues CoinFlip Over Crypto ATMs
Missouri sued CoinFlip, alleging its crypto ATMs enabled scams and charged excessive fees; state seeks $1.826M and an order to bar the operator; CoinFlip calls the suit “meritless.”
Missouri Attorney General Catherine Hanaway filed a lawsuit on May 20, 2026, against CoinFlip, accusing the crypto ATM operator of knowingly facilitating scams at its kiosks, charging excessive fees and seeking civil penalties of up to $1.826 million and a court order blocking CoinFlip from operating in the state. CoinFlip lists 136 kiosks in Missouri and 4,229 nationwide.
Hanaway opened a probe in December into several crypto kiosk operators after reports of scams targeting Missouri residents. The same investigation reviewed Bitcoin Depot, which filed for Chapter 11 bankruptcy earlier this month.
The complaint alleges CoinFlip permitted and benefited from fraudulent transactions at its machines and that its fee structure increased victims’ losses. The state asked a court to stop the company from operating in Missouri while pursuing the civil penalty noted in the filing.
Hanaway wrote on X, “Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return.” Her office said its mission is to protect Missourians’ money and to stop scammers.
A CoinFlip spokesperson rejected the allegations in a written statement, calling the lawsuit “meritless” and saying the company plans to fight the case. The spokesperson said CoinFlip has pushed for stronger consumer protections and worked with lawmakers on kiosk rules.
The company said it helped shape Missouri’s 2025 cryptocurrency kiosk consumer protection law, working with state lawmakers to establish mandatory licensure, higher compliance standards and consumer safeguards intended to reduce scam risk at kiosks.
The lawsuit is part of a broader pattern of state and local enforcement actions against crypto kiosk operators. Several jurisdictions have moved to restrict or ban the machines amid complaints about transaction monitoring and fee practices.
The attorney general’s office described the suit as part of ongoing efforts to pursue businesses it says take advantage of vulnerable Missourians.
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