Missouri AG Sues CoinFlip Over Crypto ATM Scams, Seeks $1.83M Penalties
Missouri Attorney General Catherine Hanaway filed a lawsuit on Wednesday against CoinFlip, one of the world's largest Bitcoin ATM operators, accusing it of knowingly facilitating fraudulent transactions and profiting through opaque fees. The lawsuit seeks $1.83 million in civil penalties and a ban on CoinFlip's operations in the state. Hanaway stated that Bitcoin ATMs are used as 'getaway cars for fraud,' targeting elderly victims. The lawsuit cites approximately 350 scam cases involving these machines in Missouri over the past two years. A CoinFlip spokesperson called the lawsuit 'meritless,' claiming the company has strong consumer safeguards and has advocated for consumer protection laws. The legal action adds to a growing national crackdown on crypto ATM scams, following Bitcoin Depot's Chapter 11 bankruptcy filing earlier this week due to increased litigation costs. FBI data shows Americans reported $389 million in losses from such scams last year.
Key facts
- Missouri AG sues CoinFlip for $1.83M, seeking operational ban.
- Lawsuit alleges CoinFlip knowingly facilitated fraudulent transactions.
- CoinFlip calls lawsuit 'meritless', cites consumer safeguards.
- Comes after Bitcoin Depot filed for bankruptcy due to litigation costs.
- FBI: $389M lost to crypto ATM scams in 2023.