Attorney General Hanaway Launches Investigation Into Companies Using Bitcoin ATMs To Scam Missourians
JEFFERSON CITY, Mo. – Today, Missouri Attorney General Catherine Hanaway announced that her Office has launched a statewide investigation into companies operating cryptocurrency kiosks, due to national concerns of deceptive fee structures and use by bad actors to defraud consumers.
“We have received reports of devastating new scams involving the use of Bitcoin ATMs to prey on Missourians. Our Office is investigating concerning allegations regarding hidden fees and deceptive charges on these machines and will hold bad actors accountable,” said Attorney General Hanaway. “Scammers might call claiming you are in legal trouble and must pay using Crypto ATMs immediately or face charges. If you’ve been a victim of fraud, call our Office at 800-392-8222 or visit ago.mo.gov.”
The Attorney General’s Office has issued five Civil Investigative Demands (CIDs) to cryptocurrency kiosk companies operating across the state of Missouri that engage in practices that may be in violation of Missouri’s consumer protection laws. The demands also require companies to disclose anti-fraud policies and procedures. The companies currently under investigation are:
- GPD Holdings LLC d/b/a Coinflip
- Rockitcoin, LLC
- Bitcoin Depot Operating LLC
- Athena Bitcoin, Inc.
- Byte Federal, Inc.
The above businesses each own and operate numerous cryptocurrency kiosks located across the state of Missouri. These kiosks appear like a typical ATM, but allow consumers to transact in cryptocurrency, like Bitcoin, rather than U.S. dollars. However, unlike a typical ATM, transactions on a cryptocurrency kiosk are often accompanied by disproportionate and poorly disclosed fees. These transactions are nonrefundable and difficult to trace, making them a preferred method of payment for scammers to prey on vulnerable Missourians.
Missourians who believe they have been harmed by or through the use of any cryptocurrency kiosk are encouraged to file a complaint at ago.mo.gov.
The full civil investigative demand for GPD Holdings LLC d/b/a Coinflip can be read here.
The full civil investigative demand for Rockitcoin, LLC can be read here.
The full civil investigative demand for Bitcoin Depot Operating LLC can be read here.
The full civil investigative demand for Athena Bitcoin, Inc. can be read here.
The full civil investigative demand for Byte Federal, Inc. can be read here.
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