Iowa Attorney General Brenna Bird announced lawsuits Wednesday against Bitcoin Depot and CoinFlip, the state’s two largest cryptocurrency ATM operators, alleging their failures allowed scammers to steal millions of dollars from Iowans. Speaking at the Iowa Bankers Association in Johnston, Bird detailed findings from her office’s first-of-its-kind investigation into cryptocurrency ATMs. The probe, launched in October 2023, revealed that hundreds of Iowans, primarily seniors, sent more than $20 million through Bitcoin Depot and CoinFlip ATMs over the past three years. Bird says, “Con artists are evil and will stop at nothing to steal everything you have. 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.” The lawsuits allege Bitcoin Depot takes a 23-percent cut of each transaction, while CoinFlip claims 21 percent, and that Bitcoin Depot misled customers about its refund policy. Bird is suing both companies under the Iowa Consumer Fraud Act. Iowans who believe they may have been the victim of a scam using a crypto ATM are encouraged to contact the Iowa Attorney General’s Office by calling 1-888-777-4590 or filing a complaint online at www.iowaattorneygeneral.gov.
