Missouri Sues Crypto ATM Operator CoinFlip
Officials in the U.S. state of Missouri have filed a lawsuit against GPD Holdings, which operates under the CoinFlip brand. The company is accused of knowingly facilitating and profiting from fraudulent transactions. This is the latest crackdown by U.S. states against digital currency kiosks and crypto ATMs. This was reported by Cointelegraph.com reports.
According to a statement released by the Missouri Attorney General's Office, the lawsuit was filed in response to fraud cases committed against the elderly and veterans in the state. State authorities began investigations into several crypto ATM companies last December, including Bitcoin Depot, which recently filed for bankruptcy.
The Attorney General's office is asking the court to declare CoinFlip's practices in violation of Missouri trade laws, to ban the company's operations in the state, and to impose a fine of 1,000 USD for each violation. The total fine could exceed 1.8 million USD. Compensation for damages caused to consumers is also being demanded.
According to CoinFlip, the company operates 136 crypto kiosks in Missouri and 4,229 across the U.S. In recent months, operators like Bitcoin Depot and CoinFlip have faced pressure from numerous state authorities. In some regions, laws are being passed to restrict or completely ban this technology.
The crisis in the industry is not limited to legal proceedings. Bitcoin Depot, one of the largest operators in North America, recently initiated bankruptcy proceedings in Texas. Despite having over 9,000 kiosks, the company acknowledged serious doubts about continuing its operations due to legal disputes and financial difficulties.
