Missouri Sues Coinflip: 21.9% Fees & Scams – The ‘Getaway Car’ of Fraud?

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Missouri Attorney General Catherine Hanaway, ever the hero of the people, filed a lawsuit on May 20, 2026, against GPD Holdings LLC (aka Coinflip), the Bitcoin ATM company accused of being a “getaway car for financial predators.” The suit claims Coinflip hid fees so aggressively they’d make a raccoon in a bakery blush-up to 21.9% per transaction. One 80-year-old veteran, who probably just wanted to buy a new hat, lost $200,000. Classic.

  • Key Takeaways:

  • Missouri AG Catherine Hanaway sued Coinflip for $1.8 million, arguing it’s a “financial Robin Hood” skimming 21.9% fees while scammers take the rest.

  • Coinflip’s 140+ Missouri kiosks, located in gas stations and vape shops, turned one spry senior into a crypto casualty.

  • The lawsuit demands Coinflip halt operations until it “cleans up its act”-or at least pretends to.

Missouri Sues Coinflip for Hiding 21.9% Fees and Allegedly Enabling Crypto Scams Statewide

The suit, filed in Jasper County, targets Coinflip’s 5,500+ Bitcoin ATMs worldwide. By 2025, the company had 140 kiosks in Missouri, strategically placed in convenience stores and gas stations-because nothing says “trust us” like a machine next to lottery tickets and energy drinks.

Hanaway’s office launched a December 2025 investigation, demanding Coinflip and other crypto ATM operators “explain yourself” regarding fraud policies. This lawsuit? A direct result. As Hanaway put it: “Coinflip takes a large cut… and has hidden just how large that cut really is.” Classic corporate transparency, eh?

The complaint highlights three victims. An 80-year-old veteran, lured by a scammer named “Selina Lee” (clearly a master of disguise), deposited cash into Coinflip machines thinking it was an investment. He sold his car, emptied accounts, and nearly lost his apartment. Meanwhile, a second victim, tricked by a fake sheriff’s deputy, deposited $1,000 and got back $182.38. Third, a lady deposited $900 at a machine labeled “FDIC Police Monitored”-because nothing says “safe” like a typo.

Image source: Missouri AG Catherine Hanaway’s lawsuit

Here’s the kicker: Coinflip’s machines displayed a $2.99 fee but buried a 21.9% “gotcha” in the terms of service. Deposit $100, get $75.76. The victims? Clueless. As Hanaway noted: “The company profits from every one of those transactions. That is not a business model Missouri will tolerate.” Or, as we all know, a business model that’s 21.9% more profitable.

The FTC data in the complaint is grim: Bitcoin ATM fraud losses spiked tenfold from 2020 to 2023. In 2024 alone, $65 million vanished. Seniors over 60? Their losses multiplied twentyfold. Coinflip, meanwhile, had tools like Elliptic blockchain software and cameras to spot scams but allegedly chose to ignore them. “They knew,” Hanaway said. “They just didn’t care.”

Coinflip called the lawsuit “meritless,” claiming it’s a “misguided attack” on a licensed operator. The company also took a moment to boast about its 2025 Missouri legislation efforts-because nothing says “victims first” like lobbying for your own rules. As Coinflip told KMBC: “We championed the law that protects Missourians… [but] the AG should stop wasting taxpayer money.” Sure, because suing a company that hides fees is clearly the worst use of public funds.

Missouri isn’t alone. Iowa previously sued Coinflip on similar grounds. The pattern? State AGs using consumer protection laws to target crypto kiosks as fraud hubs. The state now wants $1.8 million in penalties, restitution, and a court order to suspend Coinflip’s operations until it “fixes things.” Spoiler: It won’t.

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2026-05-21 21:36