Missouri Attorney General Catherine Hanaway filed a lawsuit Wednesday against GPD Holdings LLC, the company behind the Coinflip Bitcoin ATM network, accusing it of knowingly helping scammers and hiding fees as steep as 21.9% per transaction. The suit targets more than 140 kiosks across the state.
Fees hidden from users
According to the complaint, Coinflip didn't clearly disclose the transaction fees at the point of sale. Instead, the 21.9% markup was buried in the fine print of the terminal interface. When a user inserts cash, the machine deducts the fee from the amount of Bitcoin purchased. Hanaway's office argues that many victims — often older Missourians targeted by impersonation scams — had no idea they were losing more than a fifth of their money to fees alone.
Fraud facilitation claims
The lawsuit alleges that Coinflip knew its machines were being used to funnel money to fraudsters but did little to stop it. Scammers commonly direct victims to Bitcoin ATMs, instructing them to deposit cash in exchange for crypto that gets sent to the scammer's wallet. Hanaway claims Coinflip ignored warning signs and failed to implement basic safeguards, such as transaction limits or warnings about common scams.
More than 140 kiosks in Missouri
The state estimates that Coinflip operates over 140 Bitcoin ATMs in Missouri — in convenience stores, gas stations, and other public locations. The lawsuit seeks an injunction to halt operations at those machines, as well as restitution for consumers and civil penalties.
The case was filed in Missouri state court on May 20. A hearing date has not yet been set.
