Missouri moves to block CoinFlip over alleged crypto ATM scams

Traders Union
All News
Crypto
Missouri sues CoinFlip over crypto ATM fraud

Highlights

Missouri Attorney General sued GPD Holdings (CoinFlip), alleging it facilitated crypto ATM fraud and seeking an injunction, $1,826,000 in penalties, and restitution.
CoinFlip operates 136 kiosks in Missouri and 4,229 across the U.S., with growing regulatory scrutiny after Missouri began investigating multiple crypto ATM operators in December.
Bitcoin Depot, once North America’s largest crypto ATM operator with over 9,000 kiosks, filed for Chapter 11 in Texas, having cited over $20 million in legal judgments in late 2025.

Missouri lawsuit targets CoinFlip operations

As reported by the Missouri Attorney General’s office, the state is suing GPD Holdings, which does business as CoinFlip, for allegedly knowingly facilitating fraudulent transactions and profiting from them. The Wednesday notice says the action follows fraud incidents affecting Missouri consumers and asks the court to find that CoinFlip’s practices violate the Missouri Merchandising Practices Act.

The Attorney General’s office says it is seeking an injunction to stop CoinFlip from operating in Missouri, civil penalties of $1,000 per violation over the past five years, up to $1,826,000, and restitution for consumers. Missouri began investigating several crypto ATM companies in December, including Bitcoin Depot, which has since filed for bankruptcy.

According to CoinFlip’s website, the company operates 136 crypto kiosks in Missouri and 4,229 across the U.S. CoinFlip did not immediately respond to a request for comment on the lawsuit.

Regulatory pressure builds on crypto ATM sector

Crypto ATM operators including Bitcoin Depot and CoinFlip are facing growing pressure from U.S. states and local authorities, which in recent months have advanced laws and ordinances restricting or banning the machines. The push reflects mounting concern that digital currency kiosks are being used in fraud schemes.

Bitcoin Depot flagged those legal and regulatory risks before its bankruptcy filing. In a May 12 filing with the U.S. Securities and Exchange Commission, the company said substantial doubt existed about its ability to continue as a going concern, citing more than $20 million in legal judgments in the fourth quarter of 2025 and ongoing litigation matters.

Days later, Bitcoin Depot filed for voluntary Chapter 11 proceedings in Texas. The company had been one of North America’s largest crypto ATM operators, with more than 9,000 kiosks globally.

Our previous report on Missouri Valley Mutual Insurance Company covered AM Best’s decision to revise the insurer’s outlook to stable from negative while affirming its B+ Financial Strength Rating and 'bbb-' issuer rating. We noted the change was driven by improved profitability, surplus growth of more than 20% in 2025, and management actions such as tighter underwriting guidelines and rate increases, even as the company’s business profile remains limited to a single state.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.