Missouri Sues Crypto ATM Over ‘Fees’-CoinFlip Calls It ‘Meritless’

by

In a twist straight out of a Dickens novel, Missouri has taken a legal sledgehammer to CoinFlip, accusing the crypto ATM operator of turning its kiosks into a glorified cash machine for scammers. The state claims CoinFlip is profiting from “excessive fees” while knowingly letting fraudsters swipe Missourians’ hard-earned cash. Imagine that-crypto ATMs, the new frontier of financial wizardry.

The state is demanding a hefty $1.826 million in penalties, which, if you’re not paying attention, is roughly the cost of a small island in the Caribbean. Or maybe just a decent-sized yacht. Either way, it’s a lot of money for a company that’s probably more familiar with Bitcoin than with the concept of a traditional bank.

Follow us on X to get the latest news as it happens

Our mission is simple: protect Missourians’ hard-earned money and stop scammers in their tracks. It’s not just Bitcoin ATMs, it’s all fraud, and we will go after any business taking advantage of vulnerable Missourians.

– Attorney General Catherine L. Hanaway (@AGCHanaway) May 20, 2026

Missouri Sues CoinFlip Alleging Fraud Facilitation

The lawsuit follows a probe Hanaway opened in December into several crypto kiosk operators after reports of scams targeting Missouri residents. The same investigation also examined Bitcoin Depot. The firm filed for Chapter 11 bankruptcy this month. Because nothing says “financial stability” like a bankruptcy filing in the same week as a lawsuit.

Meanwhile, CoinFlip currently runs 136 kiosks in Missouri and 4,229 nationwide, according to its locations page. The case is the latest in a wave of state and municipal actions against crypto kiosk operators, with several jurisdictions moving to restrict or ban the machines outright. Because nothing says “innovation” like a government trying to outlaw something it doesn’t understand.

“Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return,” said Attorney General Hanaway.

CoinFlip Pushes Back, Calls Suit Meritless

In a statement shared with BeInCrypto, a company spokesperson rejected the allegations and said CoinFlip has actively lobbied for tougher consumer protection rules in Missouri and other states. Because nothing says “ethical business practices” like lobbying for regulations while being sued for fraud.

“Attorney General Hanaway’s lawsuit is meritless. It’s a misguided attack on the company that has spent years urging the passage of cryptocurrency kiosk consumer protection laws in Missouri and across the country… CoinFlip will fight this lawsuit aggressively, and we look forward to demonstrating that these allegations are baseless,” the spokesperson told BeInCrypto.

The spokesperson also added that CoinFlip was a key force behind Missouri’s 2025 cryptocurrency kiosk consumer protection legislation. Because if you can’t beat them, join them-and then sue them.

The company worked directly with state lawmakers to secure mandatory licensure, stronger compliance standards, and meaningful consumer protection requirements to shield Missourians from scammers. Or, as critics might say, to create a legal smokescreen while continuing to rake in the fees.

Read More

2026-05-21 10:38