State Attorney General seeks penalties and operational ban, citing fraud facilitation through Bitcoin ATMs targeting elderly consumers.
Missouri filed a lawsuit against Bitcoin ATM operator CoinFlip, demanding $1.83 million in penalties and a statewide ban. The state accused the firm of knowingly enabling fraudulent transactions and profiting from opaque fees targeting seniors.
The lawsuit follows a broader crackdown on crypto ATMs, with competitor Bitcoin Depot recently filing for Chapter 11 bankruptcy. Missouri’s Attorney General compared the machines to “getaway cars for fraud,” emphasizing consumer protection amid rising scam reports.
CoinFlip dismissed the claims as “meritless,” arguing it maintains robust safeguards and urging authorities to pursue actual criminals instead. The case adds to regulatory pressure on crypto kiosks nationwide.