The State of Missouri has filed a lawsuit against GPD Holdings, the company behind cryptocurrency ATM operator CoinFlip, for allegedly turning a blind eye to fraud and profiting financially from the process. In the statement made by Missouri Attorney General Catherine Hanaway’s office, it was claimed that CoinFlip contributed to fraud cases, especially targeting the elderly and veterans, through crypto ATMs.
Last December, an investigation was launched in Missouri against various crypto ATM companies, including Bitcoin Depot. Bitcoin Depot recently filed for bankruptcy. Within the scope of the investigations carried out by the Attorney General’s Office, it was reported that CoinFlip operated 136 ATMs in the State of Missouri and a total of 4,229 ATMs across the USA.
Lawsuit claims and CoinFlip’s role
The attorney general’s office is seeking a court order to declare CoinFlip’s practices in violation of Missouri’s Trade Practices Act. It also calls for CoinFlip to cease operating in Missouri, civil penalties of $1,000 per violation over five years, up to a total of $1,826,000, and reimbursement to aggrieved consumers.
In the statement regarding the lawsuit filed against CoinFlip, the following statement was made: “Our attorney general’s office requests certification that CoinFlip’s practices violate the Missouri Trade Practices Act; we also demand that the company’s operations in Missouri be stopped, a $1,000 penalty for each violation, and compensation paid to the victims.”
Recently, in the USA, ATM operators such as CoinFlip and Bitcoin Depot have been frequently targeted by local authorities. Many states and municipalities are taking steps to impose regulatory restrictions or outright bans on such ATMs.
Bitcoin Depot goes bankrupt, regulations are getting tougher
Bitcoin Depot, an important player in the crypto ATM industry, stated in the document dated May 12 that it submitted to the US Securities and Exchange Commission in recent weeks, that there are serious doubts about the company’s ability to continue its operations, and that the high amount of legal obligations and ongoing lawsuits that must be paid in the last quarter of 2025 pose a financial risk.
Bitcoin Depot operated over 9,000 crypto ATMs worldwide and stood out as one of the largest in the industry. He recently filed for bankruptcy protection voluntarily in the United States.
Mini glossary: Crypto ATMs are physical kiosks that allow users to buy and sell cryptocurrencies for cash. Unlike traditional ATMs, they generally do not require a bank account and transactions are made directly into digital wallets.
ATM discussions continue in the USA
Some states and municipalities in America are discussing the agenda of banning or restricting crypto ATMs due to increasing fraud cases. Most recently, the state of Minnesota is considering the possibility of a comprehensive ban on crypto kiosks after increasing reports of fraud.
The issue of regulating crypto ATM operators is important in terms of what kind of road map the industry will follow in the coming period. Many regulatory bodies have taken action to both protect users and prevent fraud.
According to Cointelegraph, CoinFlip did not want to comment on the case.
