- Missouri AG launched a statewide probe into Bitcoin ATM operators over alleged scam-linked fees.
- Five crypto kiosk firms face civil demands as Missouri reviews consumer protection compliance.
- Crypto ATM scams drove millions in losses statewide as officials seek added enforcement funding.
Missouri Attorney General Catherine Hanaway has launched a statewide investigation into companies operating Bitcoin ATMs, citing reports that the machines are being used in scams targeting residents across the state. The probe focuses on alleged deceptive fee structures and the role cryptocurrency kiosks may play in facilitating fraud.
The Attorney General’s Office confirmed it has issued five Civil Investigative Demands (CIDs) to cryptocurrency kiosk operators with machines located throughout Missouri. The companies under review are CoinFlip, RockItCoin, Bitcoin Depot, Athena Bitcoin, and Byte Federal.
According to the office, the demands require detailed information on fee disclosures, transaction practices, and internal anti-fraud policies. Officials stated that the inquiry aims to determine whether any practices violate Missouri consumer protection laws.
Hanaway said her office has received reports of scams in which criminals pressure victims into making urgent payments through Bitcoin ATMs, often by impersonating law enforcement or government officials. The Attorney General’s Office has encouraged residents who believe they were defrauded to report incidents directly to the state.
Budget Request to Expand Enforcement Capacity
The investigation comes as Hanaway seeks additional funding to address cryptocurrency-related fraud. In a budget request submitted in December, the Attorney General’s Office asked for $901,782 to expand its consumer protection division. The proposal would fund the hiring of five attorneys, four investigators, and two support staff.
The request was submitted ahead of Gov. Mike Kehoe’s upcoming State of the State address, where broader budget priorities are expected to be outlined. The filing states that the additional resources are intended to speed up investigations and improve response times as crypto-related scams increase.
Local and Federal Warnings Draw Out Scale of Losses
Law enforcement agencies across Missouri have reported similar patterns. The Kirkwood Police Department warned in November that residents were being contacted by scammers posing as officials and directed to withdraw cash for Bitcoin ATM deposits. In one reported case, a Kirkwood resident lost $26,000 in a single incident.
State officials have also raised concerns. Missouri Secretary of State Denny Hoskins identified crypto scams as a leading consumer issue, while Clay County authorities reported more than $3 million in Bitcoin ATM-related losses affecting over 150 residents in a two-year period.
At the national level, the Federal Bureau of Investigation reported a loss of over $5.8 billion to cryptocurrency-related fraud in 2024, an increase from prior years. Moreover, the Federal Reserve Bank of Kansas City has noted that scammers often use QR codes linked to personal wallets, making it difficult to recover stolen funds.
Related : Nebraska fights for state control of stablecoin rules as Bitcoin ATM fraud sparks national concern
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Source: https://coinedition.com/missouri-attorney-general-probes-bitcoin-atm-firms-over-growing-scam-reports/
