CoinFlip

Trust Rating

Grade: F (10/100 points). Major lawsuit, data breach, and recovery scam exposure

CoinFlip faces compounding risks: the Iowa AG lawsuit alleging a 94.92% scam rate and $11.2 million in consumer losses, a Missouri AG investigation, and a 2023 data breach that exposed 36,646 customers' SSNs, driver's licenses, and passport numbers. The breach data — combined with CoinFlip's disproportionately high scam-victim customer base — creates structural vulnerability to recovery fraud targeting. A $475,000 class action settlement addressed the breach but not the downstream recovery scam risk. CoinFlip denies the Iowa AG's allegations and maintains its compliance practices are sound. The rating reflects the combined severity of pending government actions and unresolved data security exposure.

Fees

Fee data not yet available.

Key Facts

• Founded: Unknown
• Locations: 4,310 across 50 states
• Transaction types: Buy only
• Phone: 1-773-800-2690
• Email: support@coinflip.tech

Enforcement & Regulatory History

AG Brenna Bird filed lawsuit in Polk County District Court alleging violations of Iowa Consumer Fraud Act. Allegations include: hidden 21% transaction fees, failure to prevent $11.2M in scam transactions, majority of victims over age 60. State seeking permanent Iowa ban, full refunds to scam victims, and fee caps. CoinFlip stated it 'doesn't believe these allegations reflect or align with CoinFlip's strong compliance and consumer protection practices.' (pending); AG Catherine Hanaway issued CID to CoinFlip as part of statewide investigation into Bitcoin ATM operators. Investigation focuses on fee disclosure practices and anti-fraud policies. (pending); Consent order related to money transmission operations (resolved); DOB consent order regarding compliance matters (resolved); Investigation found 94.92% of Iowa transactions through CoinFlip ATMs since Oct 2023 were scam-related. $11.2 million in consumer losses documented over 3 years - the highest of any operator investigated.; Data breach affecting 36,646 customers disclosed after employee email compromised via social engineering (Aug 7, 2023). Exposed SSNs, driver's licenses, passport numbers, and home addresses. Class action settled for $475,000 (up to $5,000/claim). Breach data creates structural vulnerability for recovery scam targeting of CoinFlip's customer base..