On 20 May 2026, Missouri Attorney General Catherine Hanaway filed a civil enforcement petition in the Circuit Court of Jasper County against GPD Holdings LLC, doing business as CoinFlip. The petition alleges CoinFlip violated the Missouri Merchandising Practices Act by knowingly operating cryptocurrency ATM kiosks as conduits for fraud while charging convoluted and excessive fees on affected transactions.
The Missouri Merchandising Practices Act, Mo. Rev. Stat. §§ 407.010 et seq., prohibits unfair, deceptive, and unconscionable trade practices in connection with the sale or advertisement of merchandise. The AG's petition alleges that CoinFlip's fee disclosures were convoluted and constituted unconscionable practice, and that CoinFlip knowingly allowed its network to facilitate schemes primarily targeting elderly Missouri consumers. The investigation was initiated in December 2025 following a statewide review of cryptocurrency kiosk operators, citing FTC data showing crypto-ATM fraud losses exceeded $65 million in the first half of 2024 alone.
CoinFlip operates more than 140 cryptocurrency kiosks in Missouri, located in convenience stores, gas stations, liquor stores, and vape shops. The petition seeks injunctive relief, civil penalties, and consumer restitution. Cryptocurrency ATM operators in Missouri, and operators in other states with comparable consumer protection statutes, should treat this filing as an indicator of heightened regulatory attention to kiosk fee disclosures, anti-fraud controls, and transaction monitoring procedures.
The action is filed under Missouri state consumer protection law, not under federal money-transmission or Bank Secrecy Act provisions. Whether the Missouri AG will coordinate with FinCEN, state banking regulators, or other state attorneys general has not been disclosed. The case is at the petition stage; CoinFlip had not filed a public response as of the date of filing.
Licentium advises crypto-asset businesses on regulatory compliance across US state and federal jurisdictions. We may advise on this matter or assist through our partner network. Work we undertake includes cryptocurrency money-transmitter licensing, consumer protection compliance audits, FinCEN registration and BSA/AML program review, fee disclosure analysis, and regulatory response strategy for state enforcement actions against crypto-asset operators.