Missouri Attorney General Catherine Hanaway has launched a statewide investigation into companies operating Bitcoin ATMs, citing a surge in "devastating" scams targeting residents. The probe focuses on alleged deceptive fee structures and the role these cryptocurrency kiosks play in facilitating fraud.
The Attorney General’s Office has issued five Civil Investigative Demands (CIDs) to specific cryptocurrency kiosk operators with machines located throughout Missouri. The companies under review are GPD Holdings, RockItCoin, Bitcoin Depot, Athena Bitcoin, and Byte Federal. The CIDs require these companies to disclose their anti-fraud policies and procedures as officials assess compliance with the state’s consumer protection laws.
Officials highlighted that transactions conducted at these kiosks, which typically allow customers to buy cryptocurrencies like Bitcoin (BTC), are nonrefundable and difficult to trace, making them a preferred tool for scammers. A common scheme involves fraudsters calling victims, claiming they are in legal trouble and must pay immediately via a Bitcoin ATM or face charges.
The action in Missouri reflects a broader national issue. The FBI has warned that Americans lost over $330 million to crypto ATM scams last year, a significant increase from the $250 million recorded in 2024. Individual states have also reported massive losses, with Arizona noting about $177 million lost to such schemes.
This is not the first regulatory action against a firm in this space. Bitcoin Depot, one of the companies named in the Missouri probe, recently agreed to pay $1.9 million to the state of Maine as part of a settlement to compensate fraud victims. The rise in scams has prompted states like Arizona to enact new laws specifically aimed at cracking down on crypto ATM fraud.
Missouri officials are seeking added enforcement funding as part of their effort to hold "bad actors" accountable and protect consumers from these growing financial threats.
