Missouri sues CoinFlip over crypto ATMs that targeted seniors
Missouri Attorney General files suit against GPD Holdings, operator CoinFlip, alleging its crypto ATMs enabled scams targeting seniors and veterans; seeks injunction, penalties and consumer refunds.
Missouri Attorney General Catherine Hanaway filed suit Wednesday in state court against GPD Holdings, which operates crypto kiosks under the CoinFlip name. The complaint alleges CoinFlip’s machines knowingly enabled fraudulent transactions that targeted seniors and veterans and that the company profited from those transactions. The state asks for an injunction, civil penalties and consumer restitution.
The suit grew from a state investigation that began in December into several crypto ATM operators. The filing asks the court to declare that CoinFlip violated the Missouri Merchandising Practices Act and to bar CoinFlip from operating in the state.
The Attorney General’s filing requests civil penalties of $1,000 for each violation over a five-year period, a total the state says could reach $1,826,000. The filing also seeks restitution for consumers who lost money and asks the court to identify violations that occurred during the covered period.
The complaint describes instances of fraud involving CoinFlip kiosks, including schemes that targeted the state’s seniors and veterans. The legal filing accuses the company of ‘knowingly facilitating fraudulent transactions and profiting from them.’
According to information on CoinFlip’s website, the company operates 136 kiosks in Missouri and 4,229 across the United States.
Regulators and local governments have increased enforcement actions and passed ordinances restricting or banning crypto ATMs after consumer complaints and reports of scams. One large operator, Bitcoin Depot, warned in a May securities filing that substantial doubt existed about its ability to continue as a going concern before it filed for Chapter 11 in Texas. That company operated thousands of kiosks and cited litigation and legal judgments among pressures on its business.
CoinFlip did not immediately respond to requests for comment. The Attorney General’s Office is seeking to halt CoinFlip’s Missouri operations and secure refunds for consumers who lost money in transactions tied to the kiosks.
The case remains pending in Missouri state court.
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