Missouri AG sues Coinflip over hidden fees at 140+ Bitcoin ATMs

Missouri Attorney General Catherine Hanaway filed a lawsuit on May 20, 2026 against GPD Holdings LLC, operator of the Coinflip Bitcoin ATM network, alleging fraud facilitation and concealed fee practices across 140-plus Bitcoin ATMs in Missouri. The complaint says Coinflip kiosks may charge up to 21.9% per transaction, while machines prominently show only a low “network fee” (cited as $2.99), with the remaining cost allegedly buried in terms. Hanaway is seeking up to $1,826,000 in civil penalties under Missouri’s MMPA, restitution, and a court injunction to halt Coinflip’s Missouri operations until stronger fraud-prevention measures are in place. Key alleged cases include: an 80-year-old veteran reportedly losing $180,000–$200,000 (Sept 2025–Mar 2026) after scammers impersonated an investment advisor and directed cash deposits into Coinflip Bitcoin ATMs; a victim depositing $1,000 after an impostor posed as a Jefferson County sheriff’s deputy, with only $182.38 refunded in fees; and a victim depositing $900 after a fake “FDIC Police Monitored” warrant scam, with no recovery claimed. The AG’s office previously launched a statewide investigation in Dec 2025 and issued civil investigative demands to crypto ATM operators. The filing also cites FTC data showing Bitcoin ATM fraud losses rising sharply, with losses reaching over $65 million in the first half of 2024. Coinflip denies wrongdoing, calls the case “meritless,” and says it will fight while supporting tighter kiosk regulation. For crypto traders, this adds to the risk of tighter compliance and enforcement around Bitcoin ATM rails, which can influence sentiment toward Bitcoin-related on-ramps without directly changing spot demand.