Missouri Fines CoinFlip $1.8M Amid U.S. Crypto ATM Crackdown

May 22, 2026

Missouri Attorney General Catherine Hanaway filed suit against crypto ATM operator CoinFlip on May 20, 2026, seeking up to $1,826,000 in civil penalties over allegations of hidden fees and failure to prevent fraudulent transactions. The case marks one of the most significant state-level enforcement actions against a Bitcoin ATM network in the United States.

What Missouri Is Seeking From CoinFlip

What to Know

Missouri is suing CoinFlip (GPD Holdings LLC) for up to $1,826,000 in civil penalties, restitution, and injunctive relief. This is a requested court penalty, not a completed fine.
The complaint alleges CoinFlip charged fees exceeding 20% of a transaction’s value without clear disclosure and failed to implement adequate fraud-prevention measures across its Missouri machines.

The petition, filed in Jasper County, asks the court to award penalties, restitution, punitive damages, and an injunction barring CoinFlip from operating in Missouri until it implements fraud-prevention safeguards. The state’s filing alleges that transaction fees could run upwards of 20% and were not routinely disclosed clearly.

Requested civil penalties

$1,826,000

Missouri’s filing seeks up to this amount in civil penalties from CoinFlip. The number comes from the petition for relief, not from a final judgment or collected payment.

According to the complaint, CoinFlip operated 143 Bitcoin ATMs in Missouri as of September 26, 2025.

Missouri Bitcoin ATMs

143

The complaint says CoinFlip operated 143 machines in Missouri, giving the enforcement action concrete scale inside the state.

Hanaway framed the action in stark terms. “Bitcoin and crypto ATMs are the new getaway cars for fraud,” she said in a press release announcing the suit.

“Bitcoin and crypto ATMs are the new getaway cars for fraud.”

Catherine Hanaway, Missouri Attorney General

CoinFlip rejected the allegations. A company spokesperson told Spectrum News that “Attorney General Hanaway’s lawsuit is meritless.”

Why the Case Fits a Wider U.S. Crypto ATM Crackdown

Missouri’s action does not exist in isolation. The state’s own intelligence centers, MIAC and the St. Louis Fusion Center, counted 350 crypto cases involving a cryptocurrency ATM over the past two years.

At the federal level, the FTC has flagged Bitcoin ATMs as a growing fraud vector. Reported Bitcoin ATM fraud losses increased nearly tenfold from 2020 to 2023 and exceeded $65 million in the first half of 2024 alone. The Missouri case adds a state enforcement layer to that federal scrutiny.

The regulatory pressure on crypto ATM operators parallels broader compliance trends across the industry. Similar to how South Korea has reviewed crypto platforms over gambling concerns, U.S. states are increasingly treating Bitcoin kiosks as consumer-protection targets rather than simple money-transmission endpoints.

What This Could Mean for Crypto ATM Operators

The fee allegations in Missouri’s complaint, specifically that charges could exceed 20% without clear disclosure, raise a compliance question for every Bitcoin ATM operator in the country. The case arrives as governments worldwide grapple with crypto regulation frameworks, though state-level consumer protection actions like Missouri’s target a narrower set of operator obligations.

Missouri’s demand for injunctive relief, requiring CoinFlip to implement fraud-prevention measures before resuming operations, signals that states may move beyond fines toward operational mandates. That approach echoes the logic behind proposals like the ARMA bill’s structured framework for digital asset oversight, where compliance requirements are built into the operating license itself.

For now, the case remains a lawsuit, not a settled matter. No court order, settlement, or payment has been issued. The outcome will depend on whether Missouri can prove its allegations in Jasper County court.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.

Diego Martinez

Bitcoin Policy & Adoption Reporter | Latin America Market Observer | Network Fundamentals Writer

Diego Martinez is a bilingual digital-assets journalist whose work focuses on Bitcoin adoption, regulation, and the real-world conditions that shape network growth across emerging markets. At BitcoinInfoNews, he covers Bitcoin policy developments, treasury and institutional adoption, regional market shifts, and practical changes in how Bitcoin is used, regulated, or integrated into financial life. His reporting style is grounded in context and is especially useful when Bitcoin stories require both market understanding and geographic nuance.

“Bitcoin adoption stories matter most when they show how policy, access, and real use actually connect.”

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He studied economics and built much of his editorial experience in Latin American digital-asset media and fintech research environments. That background gives him a useful angle on Bitcoin stories involving treasury strategy, public policy, regulatory tension, and access to financial infrastructure. His current editorial direction is more disciplined and Bitcoin-specific than his earlier broad crypto work.

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Diego’s core strengths include policy reporting, adoption coverage, international market context, source-based explanatory writing, and editorial synthesis for regulation-driven stories. He is particularly strong on articles where Bitcoin intersects with institutions, sovereign or corporate strategy, and emerging-market realities.

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