Missouri Attorney General Catherine Hanaway has sued GPD Holdings LLC, the operator of CoinFlip cryptocurrency ATMs, alleging the company facilitated fraudulent transactions and violated state consumer protection laws.
The complaint, filed in Jasper County Circuit Court, claims CoinFlip’s kiosk network was used in scams that cost Missouri residents millions of dollars. The state is seeking restitution for victims, civil penalties of up to $1.826 million, and a court order blocking GPD Holdings from operating within Missouri.
Hundreds of crypto ATM cases reported
State officials say Missouri has recorded about 350 crypto ATM-related cases in the last two years. Many of the alleged losses are tied to machines run by CoinFlip and other similar providers, according to the filing.
Authorities highlight that a significant share of victims are elderly residents living on fixed incomes. Nationally, losses among seniors linked to cryptocurrency payment methods have risen more than twentyfold since 2020, the complaint states.
CoinFlip’s footprint and fee structure
Founded in 2015, CoinFlip operates more than 140 kiosks across Missouri. The machines are placed in common retail locations, including convenience stores, liquor stores, vape shops, and gas stations.
CoinFlip has promoted its network as one of the largest for cryptocurrency ATM transactions. The lawsuit notes that the company charges transaction fees that can go as high as 21.9%, and alleges these fees are collected even when transactions are later found to be fraudulent.
According to the complaint, those fees are embedded in the platform’s pricing model, meaning they are earned regardless of whether users were targeted by scams.
How scams use crypto kiosks
The filing describes a recurring pattern in which scammers instruct targets to visit a kiosk, deposit cash, convert it to cryptocurrency, and send the funds to a wallet controlled by the fraudster.
Crypto ATMs are portrayed as the final step in schemes that often begin with phone calls, emails, or online messages posing as government agencies, utility companies, romantic partners, or tech support services.
Part of a broader national crackdown
Missouri’s action fits into a wider national push to regulate or restrict convertible virtual currency kiosks. Several states are tightening scrutiny of these machines through:
- licensing and registration requirements
- daily transaction caps
- mandatory on-screen fraud warnings
Some jurisdictions, such as Indiana and Tennessee, are moving toward outright bans on these kiosks, reflecting growing concern among regulators and law enforcement.
FBI data shows sharp rise in kiosk-related crime
The lawsuit cites national data from the Federal Bureau of Investigation’s Internet Crime Complaint Center. In 2025, the center logged more than 13,400 complaints tied to kiosk-related scams, with losses exceeding $388 million.
That total represents a 58% increase in financial damages compared with the previous year, signaling rapid growth in this type of fraud.
GPD Holdings’ response and compliance stance
GPD Holdings has previously said it relies on compliance tools and blockchain analytics to detect and block suspicious activity. The company has argued that clear regulation is needed both to protect consumers and to encourage innovation in digital assets.
It has also called for industry-wide requirements such as live customer support at kiosks and strong in-house compliance programs, describing these measures as a crucial first line of defense against scams.
Implications for access to cash-to-crypto services
The Missouri case underscores how legal and regulatory shifts can quickly change access to physical crypto kiosks. As more states review or restrict these machines, the ability to move between cash and digital assets through kiosks may become less predictable.
Traders and everyday users who rely on these locations could see sudden changes in availability as court decisions and new rules take effect.
Key considerations for using crypto kiosks
Those using physical crypto kiosks face a more complex legal and compliance environment. Several practices are becoming increasingly important:
Check legal status and licensing
Understanding the rules that apply in a specific state is essential. Using kiosk operators that are registered as a Money Service Business with the Financial Crimes Enforcement Network and licensed under relevant state laws may offer a more stable experience.
Review fee structures carefully
The Missouri lawsuit alleges that effective fees can be much higher than what is initially displayed to the user. Reading the detailed pricing terms before confirming a transaction can reduce unpleasant surprises and help assess whether the service is cost-effective.
Be aware of heightened scrutiny
Transactions linked to lightly regulated kiosks are drawing more attention from blockchain analytics firms and authorities. Funds moving into or out of wallets associated with such machines may face greater questioning by service providers and compliance teams.
Maintain thorough records
Keeping detailed receipts and logs of every transaction conducted at a kiosk is becoming critical. Clear records can help demonstrate the origin and purpose of funds in an environment where cash-to-crypto flows are under increasing legal review.
Case remains pending
The lawsuit against GPD Holdings and CoinFlip is still before the Jasper County Circuit Court. The outcome could influence both the future of crypto ATMs in Missouri and the direction of regulatory efforts in other states watching the case closely.
Worried about ATM scams? Learn how to protect yourself in crypto with Toobit Academy’s guide on crypto safety today.
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