Missouri's attorney general filed a lawsuit Thursday against CoinFlip, the crypto ATM operator, accusing the company of running a network of machines that helped scammers fleece seniors and veterans. The state claims CoinFlip ignored red flags and profited from the fraud. Potential penalties could hit $1.8 million.
The allegations
The lawsuit, filed in state court, says CoinFlip's kiosks were used by fraudsters posing as government officials or tech support agents. Victims were told to withdraw cash, deposit it into the machines, and send the crypto to scammers. The AG's office argues CoinFlip knew or should have known about the pattern — the company didn't put adequate safeguards in place.
Who was targeted
Missouri says the scheme hit older adults and military veterans especially hard. One victim in his 70s lost more than $30,000, according to the complaint. Another, a veteran, handed over roughly $15,000. The state says the machines are often placed in convenience stores and gas stations, making them easy for scammers to direct victims to.
What CoinFlip faces
The suit seeks civil penalties under Missouri's consumer protection law. Each violation could cost CoinFlip up to $1,000, and the state says there are thousands of transactions tied to the scheme. The total potential penalty sits at $1.8 million. The AG also wants the company to refund victims and tighten its compliance procedures.
What happens next
CoinFlip hasn't yet filed a response. The company, which operates thousands of kiosks nationwide, has faced similar scrutiny in other states. A hearing in the case is expected within 60 days. Meanwhile, Missouri's attorney general is urging anyone who lost money through a crypto ATM to file a complaint.
