Author: Ben Dooley
Compiled by: Deep潮 TechFlow
DeepChain Summary: Crypto ATMs, once ubiquitous across convenience stores nationwide, are collectively withdrawing under regulatory pressure. Bitcoin Depot, the world’s largest crypto ATM operator, filed for bankruptcy protection on May 18, shutting down all approximately 9,700 of its machines. The immediate causes are a wave of state-level regulations imposing transaction limits, suspending licenses, and filing fraud lawsuits—FBI data shows consumers lost $389 million through crypto ATMs in 2025. This report from ICIJ (International Consortium of Investigative Journalists) traces the full trajectory of this publicly traded company from expansion to collapse.
Caption: On April 6, 2026, a police officer disconnects the power from a Bitcoin Depot ATM at a convenience store in Haverhill, Massachusetts.
Image source: Jessica Rinaldi/The Boston Globe via Getty Images
Bitcoin Depot, formerly the world's largest cryptocurrency ATM operator, officially filed for bankruptcy protection on May 18. The company, long accused of facilitating fraud, delivered another major blow to the industry.
CEO Alex Holmes stated on the company’s website that all approximately 9,700 of the company’s cryptocurrency ATMs have been taken offline and will cease operations.
Holmes attributed the cause to "increasingly stringent compliance requirements, including new transaction limits, and direct restrictions or bans on crypto ATMs in certain jurisdictions," which made the company's business model unsustainable.
Over the past year, local and state governments across the United States have significantly tightened regulations on cryptocurrency ATMs. These machines function similarly to bank ATMs but are used to exchange cash for cryptocurrency. Regulators have launched investigations into operators due to concerns that these machines could be used for fraud.
FBI data shows that in 2025, consumers lost $389 million to scams through crypto ATMs 遭遇诈骗损失达 3.89 亿美元. Scammers use these machines to quickly transfer victims’ funds overseas, beyond the reach of U.S. law enforcement.
Facing crackdowns from multiple states within six months, quarterly revenue plummeted nearly 50%.
As the largest cryptocurrency ATM operator, Bitcoin Depot has become a target for regulation. How intense has the crackdown been over the past six months?
Connecticut revoked Bitcoin Depot’s banking license due to inadequate anti-money laundering controls; the Missouri Attorney General launched an investigation into the company and other cryptocurrency ATM businesses; Nevada and Maine reached enforcement settlements with the company, requiring fines and compliance with state regulations. The Massachusetts Attorney General directly sued Bitcoin Depot, alleging that most of its revenue comes from cryptocurrency scams. The Iowa Attorney General’s office also filed a lawsuit.
The financial impact is staggering. Documents filed with the SEC by Bitcoin Depot earlier this month show that revenue for the quarter ended in March plunged nearly 50% year-over-year, primarily due to “state and municipal regulations prohibiting or restricting crypto ATMs, capping fees, and limiting transaction amounts,” as well as the company’s own implementation of “stricter” compliance and anti-fraud measures, such as enhanced KYC (Know Your Customer) procedures.
In February this year, the company announced that all transactions would require customers to verify their identities, making it harder for scammers to exploit these machines, but also deterring a large number of users.
Burdened by lawsuits and accumulating legal fees
While revenues plummeted, Bitcoin Depot also faced massive legal expenses. Bankruptcy filings reveal that the company is dealing with multiple lawsuits, all pointing to the same issue: failing to take adequate measures to prevent fraudulent transactions from occurring through its machines. In addition, an arbitration award in late 2025 related to a business dispute with its Canadian subsidiary imposed nearly $19 million in damages on the company.
ICIJ and CNN’s 2025 joint investigation found that at least $1.5 million in fraudulent transactions were completed through hundreds of Bitcoin Depot machines installed in Circle K convenience stores. Bitcoin Depot received millions of dollars in rental payments from Circle K while taking a cut from each transaction.
The investigation found that Circle K management was aware of the issue but continued to collaborate with Bitcoin Depot.