- Iowa AG Brenna Bird sued cryptocurrency ATM operators Lux Vending, LLC, and Bitcoin Depot Operating, LLC (collectively, “Bitcoin Depot”) and GPD Holdings LLC d/b/a CoinFlip (“CoinFlip”) for allegedly failing to protect consumers from scams perpetrated using their ATMs in violation of state consumer protection law.
- The complaints against Bitcoin Depot and CoinFlip allege that the companies, which run a type of cryptocurrency ATM that allows consumers to buy Bitcoin and send it to a third party using an address associated with a digital wallet, failed to protect consumers against scammers who lured fraud victims to their ATMs to complete transactions, imposed excessive and hidden fees on scam transactions, and had deceptive refund policies.
- The lawsuit seeks declaratory and injunctive relief, civil penalties, reimbursement, disgorgement, and costs and fees, among other remedies.
- As previously reported, other AG actions have focused on alleged cryptocurrency-related fraud, including the New York AG’s settlement with cryptocurrency company Gemini Trust Company, LLC, and the Massachusetts AG’s settlement with payment processor Stripe, Inc.