Missouri AG Sues Coinflip, Alleges 21.9% Hidden Fees on Bitcoin ATMs

May 21, 2026 — Missouri Attorney General Catherine Hanaway filed a lawsuit against Coinflip operator GPD Holdings LLC on May 20, 2026, accusing the company of hiding transaction fees reaching 21.9% while knowingly facilitating cryptocurrency fraud through its network of over 140 Bitcoin ATMs across the state.

Immediate Details & Direct Quotes

The lawsuit, filed in the Circuit Court of Jasper County, Missouri’s 29th Judicial Circuit, seeks up to $1,826,000 in civil penalties under the Missouri Merchandising Practices Act (MMPA). Coinflip operates more than 5,500 crypto ATMs nationwide, with over 140 kiosks placed in Missouri convenience stores, liquor stores, gas stations, and vape shops as of late 2025.

“Coinflip has become the getaway car for financial predators targeting Missouri residents,” Hanaway stated in the filing. “While scammers take the bulk of the victims’ money, Coinflip takes a large cut from every transaction and has hidden just how large that cut really is.”

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 posing as an investment advisor. The victim sold his vehicle, drained investment accounts, and nearly lost his apartment after being directed to deposit cash into Coinflip machines.

A second victim deposited $1,000 at a vape shop kiosk after a caller impersonating a Jefferson County sheriff’s deputy claimed she faced arrest warrants for missing jury duty. Coinflip refunded only $182.38 in fees. A third victim deposited $900 at a machine labeled “FDIC Police Monitored” after a similar fake warrant scam and reportedly recovered nothing.

Market Context & Reaction

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 Bitcoin. None of the three named victims recall any clear disclosure of the full fee amount.

Federal Trade Commission data cited in the complaint shows fraud losses at Bitcoin ATMs increased nearly tenfold from 2020 to 2023. In the first half of 2024 alone, reported losses topped $65 million, with a median reported loss of $10,000 per transaction. Reported losses by adults over 60 have risen more than twentyfold since 2020.

The complaint argues Coinflip had access to Elliptic blockchain analytics software capable of flagging suspicious wallet activity, and each kiosk is equipped with a remotely accessible video camera. The suit alleges Coinflip’s internal data from 2021 showed 99.64% of transactions involved purchases rather than sales—a pattern consistent with scam-driven one-way deposits.

Background & Historical Context

Hanaway’s office launched a statewide investigation in December 2025, issuing Civil Investigative Demands to five crypto ATM operators, including Coinflip, to examine anti-fraud policies and fee disclosures. This lawsuit is the first direct result of that investigation.

Similar actions have been brought in other states. Iowa previously sued Coinflip and other Bitcoin ATM operators on comparable grounds. The Missouri case fits a pattern of state attorneys general using consumer protection statutes to target cryptocurrency kiosk companies as fraud vectors.

Coinflip called the lawsuit “meritless” and described it as a “misguided attack” on a licensed operator. “The Attorney General is wrongfully targeting the company that championed the law that protects Missourians from criminal scammers,” the company said. “Rather than waste taxpayer money pursuing a licensed and regulated company, the Attorney General’s office should investigate, catch and stop those criminals preying on Missourians across the financial services ecosystem.”

What This Means

The state seeks civil penalties up to $1,826,000, calculated at $1,000 per MMPA violation over five years, along with restitution for victims statewide. The court is also asked to suspend Coinflip’s Missouri operations until effective fraud-prevention measures are implemented.

For crypto ATM users, this case highlights the importance of verifying fee disclosures and understanding that kiosks in public locations may charge significantly more than the advertised network fee. Regulators are increasingly scrutinizing ATM operators as fraud vectors, potentially leading to stricter state-level licensing requirements for crypto kiosk operators nationwide.

Not financial advice. Always conduct your own research before using cryptocurrency services.

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