Missouri AG Sues Crypto ATM Network for Enabling Scams Through Kiosks

The Missouri Attorney General's office has launched an investigation into a cryptocurrency ATM network, alleging that it enables scams.

GPD Holdings LLC, operating under the name CoinFlip, is accused of facilitating fraudulent transactions through its kiosks and profiting from convoluted fees. The company operates over 140 kiosks across Missouri, including in convenience stores, liquor stores, vape shops, and gas stations.

The lawsuit filed by Attorney General Catherine Hanaway cites a report from the Federal Trade Commission, which shows that fraud losses at crypto ATMs have increased nearly tenfold between 2020 and 2023. The attorney general's office is seeking to declare CoinFlip's business practices as violating the Missouri Merchandising Practices Act.