Des Moines, IA – Iowa Attorney General Brenna Bird has filed lawsuits against Bitcoin Depot and CoinFlip, the state’s largest cryptocurrency ATM operators, accusing them of facilitating millions in fraud. According to the lawsuits, the companies failed to prevent scams, allowing Iowans—particularly seniors—to transfer large sums to fraudsters through their kiosks.
State Investigation Uncovers Widespread Crypto Scams
In October 2023, the Attorney General’s office launched a groundbreaking investigation into cryptocurrency ATM operators. Officials subpoenaed 14 companies, requesting a list of Iowans who had transferred money through the machines. Investigators then contacted these individuals, reviewed complaints, police reports, and self-reported scams.
The findings were alarming: Hundreds of Iowans sent over $20 million through Bitcoin Depot and CoinFlip ATMs within less than three years. Most victims were over the age of 60.
Attorney General Calls Out “Evil” Scammers
Attorney General Bird condemned the scammers, stating:
“Con artists are evil and will stop at nothing to steal everything you have. They specifically target older Iowans—some even comb through obituaries to find widows. They manipulate victims into using crypto ATMs, while these companies take a cut of the profits. It’s not just wrong—it’s illegal.”
Bird emphasized her commitment to recovering stolen funds and forcing crypto ATM companies to implement safeguards.
How Bitcoin Depot and CoinFlip Profit From Scams
The investigation revealed that Bitcoin Depot pockets 23% of each transaction, while CoinFlip takes 21%—directly profiting from fraud victims. The lawsuits allege that both companies:
- Charge excessive and hidden transaction fees.
- Mislead consumers about their refund policies.
- Violate the Iowa Consumer Fraud Act.
Lawsuits Aim to Protect Iowans from Future Fraud
Attorney General Bird is suing both companies for consumer fraud and demanding major changes in their operations. The broader investigation into crypto ATM companies remains ongoing.
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