DES MOINES—Iowa Attorney General Brenna Bird, Wednesday, announced lawsuits against Bitcoin Depot and CoinFlip, Iowa’s two largest cryptocurrency ATM operators, over their failures that allowed Iowans to transfer millions of dollars to scammers through their kiosks. The announcement was made during a press conference at the Iowa Bankers Association in Johnston.

Bird said “Con artists are evil and will stop at nothing to steal everything you have,” said Attorney General Bird. “We already know that they target older Iowans, but now it seems that they even hunt through obituaries to target widows. They convince these older women that they need help, and then send their victims to crypto ATMs. And the crypto ATM companies take a cut of the profits. It’s not just wrong, it’s illegal. I’m fighting to get Iowans their money back and force the crypto ATM companies to make big changes. No Iowan should get ripped off like this.”

IA AG Brenna Bird press conference, 2-26-25

In October 2023, the Iowa Attorney General’s office launched a first-of-its-kind investigation into cryptocurrency ATM companies. The office subpoenaed 14 total crypto ATM companies for a list of Iowans who had sent money through their kiosks. The office then contacted those Iowans by phone and email. It also investigated complaints, police reports, and self-reported scams. The investigation revealed that hundreds of Iowans sent more than $20 million through Bitcoin Depot and CoinFlip ATMs in a less than 3-year period. The majority of scam victims were over the age of 60.

The investigation also exposed how cryptocurrency ATMs profit off of Iowans getting scammed. Bitcoin Depot takes a 23% cut of the money Iowans send through the machines, and CoinFlip claims 21%.

The lawsuits allege that both Bitcoin Depot and CoinFlip profit directly from Iowa scam victims by imposing excessive, and often hidden, transaction fees. It also alleges that Bitcoin Depot deceives Iowans about its refund policy. Attorney General Bird is suing both companies for violating the Iowa Consumer Fraud Act. The investigation into crypto ATM companies is ongoing.

If you or someone you know has been targeted by a crypto ATM scam, contact the Iowa Attorney General’s office at 1-888-777-4590 or file a complaint online: https://www.iowaattorneygeneral.gov/for-consumers/file-a-consumer-complaint.

After Bird’s press conference Coinflip released a statement that said:

We don’t believe these allegations reflect or align with CoinFlip’s strong compliance and consumer protection practices, which we look forward to defending. We never want to see anyone get scammed, so we work to protect customers with blockchain analytics to stop fraud, visible consumer warnings, and education campaigns. Thousands of Americans count on the freedom to use crypto kiosks every day for legitimate transactions, and protecting these consumers as they use kiosks to access digital currency is an important way to support our country’s national crypto innovation goals.

Dana Callahan, Coinflip Spokesperson