CoinFlip Crypto ATM Company Faces Legal Action from Missouri Attorney General Over Fraud Allegations
Missouri's legal action comes after December 2025 authorities began examining multiple cryptocurrency ATM operators over accusations of misleading fee practices and fraudulent activities.
The state of Missouri has filed a lawsuit targeting GPD Holdings, the entity operating under the CoinFlip brand as a cryptocurrency ATM provider, alleging the company "knowingly facilitated fraudulent transactions and profited from them." This represents the most recent action by a US state government against digital currency kiosk and ATM operators.
According to a statement released on Wednesday by Missouri Attorney General Catherine Hanaway's office, the legal action against GPD Holdings, which conducts business as CoinFlip, stems from multiple fraud cases, with victims including the state's "seniors and veterans." Missouri authorities initiated an investigation last December targeting multiple crypto ATM operators, which included Bitcoin Depot, a company that has since filed for bankruptcy protection.
"The Attorney General's Office is asking the Court to declare that CoinFlip's practices violate the Missouri Merchandising Practices Act; to enjoin CoinFlip from operating in Missouri; to impose civil penalties of $1,000 per violation over the past five years (up to $1,826,000); and to award restitution to consumers," said the AG's office.
Data from CoinFlip's official website indicates the company maintains operations for 136 crypto kiosks throughout Missouri, with a total of 4,229 kiosks across the entire United States.
Over the past several months, cryptocurrency ATM operators including Bitcoin Depot, CoinFlip and additional companies have faced increasing scrutiny from US state authorities and local municipalities that have enacted legislation and regulations either restricting or completely prohibiting the technology from their jurisdictions.
Cointelegraph reached out to CoinFlip for comment on the lawsuit but did not receive an immediate response.
Bitcoin Depot warned of lawsuits and regulations before filing for bankruptcy
In a filing submitted on May 12 to the US Securities and Exchange Commission, cryptocurrency ATM operator Bitcoin Depot disclosed that "substantial doubt exists about the Company's ability to continue as a going concern." These concerns regarding the payment of more than $20 in legal judgments during the fourth quarter of 2025 and "ongoing litigation matters" emerged only days prior to Bitcoin Depot's filing for voluntary Chapter 11 proceedings in Texas.
Bitcoin Depot was one of the largest crypto ATM operators in North America, responsible for more than 9,000 kiosks globally.