The lawsuit demands restitution for senior citizens who lost money through CoinFlip's Bitcoin ATMs, with the state's top prosecutor claiming the company knowingly processed fraudulent transactions rather than acting as an unwitting intermediary. CoinFlip has pushed back sharply, calling the legal action meritless and signaling it intends to fight the case. The suit reflects a broader regulatory crackdown on Bitcoin ATM operators, who have increasingly been scrutinized for their role in scams targeting older Americans. Fraudsters typically instruct victims to deposit cash into crypto ATMs under false pretenses, making fund recovery nearly impossible. Regulators and lawmakers across multiple states have been tightening oversight of the industry.
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