Russell and Kelley Sue CoinFlip in Delaware Over Two-Way Bitcoin ATMs.

John W. Russell, Mark Russell, and Jordan Kelley, appearing on their own behalf, filed a complaint against GPD Holdings LLC, doing business as CoinFlip, No. 1:26-cv-01416 (D. Del.), on November 4, 2026. The complaint says the three plaintiffs jointly own the patent in equal one third shares under an assignment that includes accrued infringement claims. It describes the defendant as a Delaware limited liability company based in Chicago, and pleads venue under 28 U.S.C. § 1400(b) on the ground that the defendant resides in Delaware.

The patent

The complaint asserts claims 1 and 8 of U.S. Patent 10,332,205, "Bitcoin kiosk/ATM device and system and method of using the same," which it says issued June 25, 2019 from Application No. 13/942,930, filed July 16, 2013, and names Mark Russell and John W. Russell as inventors. As the complaint describes them, claim 1 covers a kiosk with a bill validator, bill dispenser, user interface, and processor that sends Bitcoin from local inventory for a cash purchase, buys Bitcoin from a remote third party exchange into that inventory when it is short, and dispenses cash after verifying Bitcoin sent by the user for a sale. Claim 8 covers a system of a central computer and multiple such devices. The complaint offers a construction under which a server administered hot wallet or operator controlled exchange account balance can be the claimed local inventory when it serves the kiosk and the purchased Bitcoin is credited to that inventory before it is sent to the customer.

The accused kiosks

The accused apparatus and system are CoinFlip two-way Bitcoin kiosks in the United States, with their connected processing components, which the complaint identifies through CoinFlip's locator and its buying and cash withdrawal guides. For the claimed inventory and exchange steps, it relies on documentation from a kiosk platform vendor that it says identifies CoinFlip as a customer and describes buying strategies that send Bitcoin from a hot wallet and fall back to an exchange purchase, and on a January 2, 2020 GPD Holdings submission retained by a state securities regulator describing purchases from liquidity providers into a CoinFlip wallet connected to its terminals.

What the complaint alleges

Count I alleges direct infringement of claim 1 and Count II direct infringement of claim 8 under 35 U.S.C. § 271(a), based on the defendant's use of the kiosks and central resources as principal in customer purchases and sales. It alleges, on information and belief, that the accused kiosks and connected application server buy Bitcoin from a remote exchange when a kiosk's local inventory cannot fill a pending cash purchase, and it makes its allegations about the defendant's software implementation, configuration, and internal transaction records on information and belief.

Relief requested

The prayer asks for a judgment of direct infringement of claims 1 and 8, compensatory damages under § 284 within the limits of §§ 286 and 287, an accounting and supplemental damages, an ongoing reasonable royalty if continuing infringement is shown, interest, and costs.

Where the case stands

The plaintiffs demanded a jury trial. On November 4, 2026, the court issued the plaintiffs a deficiency notice on the summons they submitted. The same plaintiffs filed a second complaint on the same patent the same day against another Bitcoin kiosk operator, No. 1:26-cv-01415. Watch for a corrected summons, service, and the defendant's answer or a motion.