Missouri Attorney General Catherine Hanaway Sues CoinFlip Operator GPD Holdings Over Crypto ATM Scams

Missouri Attorney General Catherine Hanaway filed suit against GPD Holdings LLC, known as CoinFlip, seeking to stop the company from operating in Missouri and to impose civil penalties and restitution tied to alleged crypto ATM fraud.

“Missouri lawsuit against CoinFlip”

Cointelegraph

The lawsuit asks 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.

Cointelegraph

CoinFlip operates 136 crypto kiosks in Missouri and 4,229 in the US, according to CoinFlip’s website, while Hanaway’s office said the action follows fraud incidents affecting Missouri consumers, including “seniors and veterans.”

Hanaway said her office is targeting what she described as “knowingly facilitating fraudulent transactions and profiting from them with convoluted and excessive fees through cryptocurrency kiosks,” and she said the case is meant to protect Missourians from scams tied to cryptocurrency kiosks.

In remarks tied to the suit, Hanaway called Bitcoin and crypto ATMs “the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return,” and she said, “As attorney general, I’ll use every tool to flush out the cowardly scammers hiding behind screens and hold them accountable.”

CoinFlip, meanwhile, told KY3 News that “Attorney General Hanaway’s lawsuit is meritless,” calling it “a misguided attack on the company” and saying the attorney general is “wrongfully targeting the company that championed the law that protects Missourians from criminal scammers.”

Cryptonews.net

KY3 reported that 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.

KY3 also reported that while CoinFlip publicly states its Bitcoin ATMs are safe and have fraud-prevention mechanisms, Hanaway alleges scam transactions happen with them regularly, and she cited Federal Trade Commission reporting that fraud losses at crypto ATMs are “skyrocketing.”

The Missouri case comes as other US state authorities and municipalities have targeted crypto ATM operators with laws and ordinances restricting or outright banning the technology, and the reporting cited repeated targeting of CoinFlip and Bitcoin Depot.

Cointelegraph’s reporting and the Missouri-focused coverage both point to Bitcoin Depot’s regulatory and legal pressure, including a May 12 filing with the US Securities and Exchange Commission saying “substantial doubt exists about the Company’s ability to continue as a going concern.”

That same reporting said Bitcoin Depot cited more than $20 million in legal judgments in the fourth quarter of 2025 and “ongoing litigation matters” shortly before filing for voluntary Chapter 11 proceedings in Texas.

KY3 added that in December 2025 Hanaway’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, and it said victims are encouraged to contact local law enforcement, report to the FBI’s Internet Crime Complaint Center, and file a complaint at ago.mo.gov.