‘Getaways for fraud’- Missouri fines CoinFlip $1.8M amid U.S. crypto ATM crackdowns
Crypto ATMs installations dropped sharply in May amid the regulatory pressure.
Missouri wants CoinFlip, one of the world’s largest crypto ATMs (automated teller machines), to cease operations in the state. Additionally, the state is seeking a $1.82 million fine for alleged scams targeting elderly people.
In a statement, Missouri Attorney General (AG) Catherine Hanaway claimed that CoinFlip has “knowingly facilitated fraudulent transactions” and profited from excess fees on its crypto ATMs.
She added,
Bitcoin and crypto ATMs are the new getaway cars for fraud, whisking away innocent people’s money to scammers, never to return. As AG, I’ll use every tool to flush out the cowardly scammers hiding behind screens and hold them accountable.
She stressed that the elderly people were most prone to crypto ATM fraud, highlighting a 20x increase in scams targeting them. According to Hanaway, Missouri has experienced 350 crypto ATM-related scams in the past two years, and it should be reined in.
My office will always prioritize protecting Missourians—especially our seniors and veterans.
As such, the AG is asking the court to ban CoinFlip from Missouri, pay $1.82 million in fines for violations done in the past five years, and make victims whole again.
Crypto ATM crackdown widens across U.S.
CoinFlip isn’t the only crypto ATM operator under scrutiny. Other providers, including Bitcoin Depot, Athena Bitcoin, and Byte Federal, are also facing investigations.
Several states have already taken action: Indiana, Minnesota, and Tennessee have banned crypto ATMs, while Iowa and Massachusetts are pursuing major operators such as Bitcoin Depot. Like Missouri, the allegations center on fraud and hidden fees that harm users.
Moreover, the crypto ATMs have also become targets for hackers, with Bitcoin Depot losing $3.6M in a recent exploit. And the impact of the crackdowns is already being felt.
Bitcoin Depot filed for Chapter 11 bankruptcy on the 18th of May, citing increased lawsuits and crackdowns. Alex Holmes, CEO of Bitcoin Depot, said,
These developments have materially affected Bitcoin Depot’s business and financial position. Under these circumstances, the Company’s current business model is unsustainable.
This network of over 9000 crypto ATMs will wind down. In fact, CoinATMradar showed there were nearly 10,000 crypto ATMs uninstalled in May alone, setting a record.
Final Summary
- Missouri has filed a lawsuit against crypto ATM provider CoinFlip, seeking $1.82M in civil penalties.
- The intense crackdown on crypto ATMs across the U.S. has forced Bitcoin Depot to wind down.
