Missouri has sued CoinFlip, accusing the company of knowingly facilitating fraudulent transactions and profiting through excessive fees at its crypto kiosks. The lawsuit, filed by Missouri Attorney General Catherine Hanaway’s office, seeks civil penalties of up to $1.826 million and a court order to block CoinFlip’s operations in the state.
Why the state moved now
Hanaway opened a probe in December into several crypto kiosk operators after reports of scams targeting Missouri residents. The investigation also looked at Bitcoin Depot, which filed for Chapter 11 bankruptcy this month. CoinFlip currently runs 136 kiosks in Missouri and 4,229 nationwide — making it one of the largest operators in the state.
CoinFlip’s defense
CoinFlip called the lawsuit “meritless.” The company says it actively lobbied for tougher consumer protection rules in Missouri and was a key force behind the state’s 2025 cryptocurrency kiosk consumer protection legislation. It claims it worked with state lawmakers on mandatory licensure and compliance standards. The timing of the lawsuit, however, puts those claims to the test.
The kiosk numbers
At 136 machines across Missouri, CoinFlip’s footprint is modest relative to its national network. But the state argues that even a single kiosk can cause significant harm when it’s used to defraud residents. The lawsuit alleges CoinFlip knew about the scams and still pocketed excessive fees — a charge the company flatly denies.
What the state wants
Missouri is seeking civil penalties of up to $1.826 million and a court order to block CoinFlip from operating in the state altogether. A court date hasn’t been set yet. For now, the kiosks remain up and running, but the lawsuit raises a question the company will have to answer in court: did it profit from fraud, or was it a victim of bad actors using its machines?
