Bitcoin Depot, the world’s largest cryptocurrency ATM operator, has filed for bankruptcy, and all 9,700 of its machines have been taken offline.
TechFlow Selected TechFlow Selected
Bitcoin Depot, the world’s largest cryptocurrency ATM operator, has filed for bankruptcy, and all 9,700 of its machines have been taken offline.
Targeted by multiple states within six months, quarterly revenue plummeted nearly 50%.
Navigating Web3 tides with focused insightsBy Ben Dooley
Translated by TechFlow
TechFlow Intro: Cryptocurrency ATMs—once ubiquitous across U.S. convenience stores—are collectively shutting down under mounting regulatory pressure. Bitcoin Depot, the world’s largest crypto ATM operator, filed for bankruptcy protection on May 18, halting operations of its approximately 9,700 machines. The immediate cause: a wave of state-level transaction limits, license suspensions, and anti-fraud lawsuits. According to FBI data, consumers lost $389 million through crypto ATMs in 2025. This report from the International Consortium of Investigative Journalists (ICIJ) reconstructs the full arc of the publicly traded company’s rapid expansion—and sudden collapse.
Caption: On April 6, 2026, a police officer disconnects a Bitcoin Depot ATM at a convenience store in Haverhill, Massachusetts.
Photo source: Jessica Rinaldi/The Boston Globe via Getty Images
Bitcoin Depot, once the world’s largest cryptocurrency ATM operator, officially filed for bankruptcy protection on May 18—a further blow to an industry long accused of facilitating fraud.
In a statement posted on the company’s website, CEO Alex Holmes announced that all ~9,700 of its crypto ATMs have been taken offline and operations will cease.
Holmes attributed the collapse to “increasingly stringent compliance requirements—including new transaction limits—as well as direct restrictions or bans on crypto ATMs in certain jurisdictions,” rendering the company’s business model unsustainable.
Over the past year, local and state governments across the U.S. have significantly tightened regulation of crypto ATMs. Functionally similar to bank ATMs, these devices convert cash into cryptocurrency. Concerned that they serve as conduits for fraud, regulators have launched investigations into operators nationwide.
FBI data shows consumers lost $389 million through crypto ATM scams in 2025. Fraudsters use these machines to rapidly move victims’ funds overseas—beyond the reach of U.S. law enforcement.
Targeted by Multiple States Within Six Months; Quarterly Revenue Plunges Nearly 50%
As the largest crypto ATM operator, Bitcoin Depot became the prime regulatory target. How intense was the crackdown over the past six months?
Connecticut revoked Bitcoin Depot’s banking license, citing inadequate anti-money laundering controls; Missouri’s Attorney General launched an investigation into Bitcoin Depot and other crypto ATM firms; Nevada and Maine reached enforcement settlements with the company, requiring it to pay fines and comply with state rules. Massachusetts’ Attorney General filed suit directly against Bitcoin Depot, alleging most of its revenue derived from crypto scams. Iowa’s Attorney General’s Office also filed litigation.
The financial impact is stark. In filings submitted to the SEC earlier this month, Bitcoin Depot reported that quarterly revenue for the period ending March fell nearly 50% year-on-year—primarily due to “state and municipal regulations banning or restricting crypto ATMs, capping fees, and limiting transaction amounts,” as well as the company’s own implementation of “more stringent” compliance and anti-fraud measures, such as enhanced KYC (“Know Your Customer”) procedures.
In February, the company announced that identity verification would be required for all transactions—a move that made it harder for fraudsters to exploit its machines but also deterred large numbers of users.
Swamped by Lawsuits, Mounting Legal Costs
Alongside collapsing revenue, Bitcoin Depot faces massive legal expenses. Its bankruptcy filing reveals multiple lawsuits—all centered on the same allegation: failure to implement sufficient safeguards to prevent fraudulent transactions on its machines. Additionally, an arbitration ruling in late 2025 related to a business dispute with its Canadian subsidiary ordered the company to pay nearly $19 million in damages.
A joint 2025 investigation by ICIJ and CNN found that at least $1.5 million in fraudulent transactions flowed through hundreds of Bitcoin Depot machines installed at Circle K convenience stores. Bitcoin Depot paid Circle K millions of dollars in lease fees while taking a cut from each transaction.
The investigation revealed that Circle K’s management was aware of the issue but continued partnering with Bitcoin Depot.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@ICIJorg
