Consumer protection mechanisms have been established but are still being sued; who will bear the compliance costs?

CryptoWorld reports that Missouri Attorney General Catherine Hanaway has filed a lawsuit against Bitcoin ATM operator Coinflip, alleging that it “knowingly assisted fraudulent transactions” and profited through high fees. She is seeking to have Coinflip stop operating in Missouri and is also requesting approximately $1.83 million in civil damages. Coinflip responded that the lawsuit is “without merit” and said the company has established consumer protection mechanisms, adding that law enforcement should pursue the real scammers instead. The case comes against the backdrop of recent stepped-up regulation and enforcement actions targeting Bitcoin ATM scams across multiple U.S. states, with the scams primarily targeting elderly people. Previously, North America’s largest Bitcoin ATM operator, Bitcoin Depot, also applied for Chapter 11 bankruptcy protection.