Missouri Attorney General Catherine Hanaway sued Coinflip seeking up to $1,826,000 in civil penalties under the Missouri Merchandising Practices Act. Coinflip operates more than 140 bitcoin automated teller machines in Missouri, charging fees up to 21.9%. The lawsuit seeks an injunction stopping Coinflip operations in Missouri until stronger fraud-prevention measures are implemented. The case follows a statewide investigation that issued civil investigative demands to multiple crypto ATM operators to examine anti-fraud policies and fee disclosures. The complaint alleges Coinflip enables financial predators by taking a large cut from transactions while allegedly obscuring the true fee impact. It cites victim losses including an 80-year-old veteran losing up to $200,000 and another victim depositing $1,000 after an impersonation scam, with a limited refund.
"Missouri AG Catherine Hanaway sued Coinflip on May 20, 2026, seeking up to $1,826,000 in civil penalties under the MMPA. Coinflip's 140-plus Missouri BTMs charge fees up to 21.9%, with one 80-year-old veteran losing up to $200,000 in a single scam. The lawsuit seeks a court injunction halting Coinflip operations in Missouri until stronger fraud-prevention measures are in place."
"Hanaway's office launched a statewide investigation in December 2025, issuing Civil Investigative Demands to five crypto ATM operators, including Coinflip, to examine anti-fraud policies and fee disclosures. This lawsuit is the direct result of that investigation. Coinflip has become the getaway car for financial predators targeting Missouri residents, Hanaway states in the filing. While scammers take the bulk of the victims' money, Coinflip takes a large cut from every transaction and has hidden just how large that cut really is."
"The complaint details three victim cases. An 80-year-old veteran lost between $180,000 and $200,000 between September 2025 and March 2026 to a scammer using the name Selina Lee, who directed him to deposit cash into Coinflip machines while posing as an investment advisor. He sold his vehicle, drained investment accounts, and nearly lost his apartment."
"A second victim deposited $1,000 at a vape shop kiosk after a caller impersonating a Jefferson County sheriff's deputy told her she faced arrest warrants for missing jury duty. Coinflip refunded only $182.38"
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