Bitcoin ATM Firm CoinFlip Blasts 'Meritless' Lawsuit as Missouri Demands Restitution for Seniors
Missouri Attorney General Catherine Hanaway filed a lawsuit against Bitcoin ATM operator CoinFlip, accusing the company of enabling fraudulent transactions and charging high, opaque fees that harm consumers, particularly the elderly. Hanaway seeks to ban CoinFlip from operating in Missouri and is pursuing $1.83 million in civil penalties. The suit follows similar legal actions nationwide as authorities respond to a surge in crypto-related scams targeting seniors, with Americans reporting $389 million in losses last year. Missouri officials have linked about 350 scam cases to Bitcoin ATMs in the state over the past two years. CoinFlip, which has 140 kiosks in Missouri, denies wrongdoing, asserts it supports consumer protection laws, and plans to defend itself in court. The legal crackdown comes as other major Bitcoin ATM operators, such as Bitcoin Depot, face financial distress amid mounting litigation, with some states banning crypto ATMs outright.
