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Multiple state regulators accuse Bitcoin Depot, involved in scam victim refunds
Techub News reports that, according to crypto.news, cryptocurrency ATM operator Bitcoin Depot has filed for Chapter 11 bankruptcy protection in a Texas court and has shut down its global ATM network. The company states that due to increased compliance requirements and enforcement actions by regulators in multiple states, its business model can no longer be sustained. Revenue in the first quarter of 2026 decreased by 49.2% year-over-year, after disclosing a $3.7 million cryptocurrency wallet theft incident. Connecticut regulators suspended the company’s money transfer license in March this year, accusing it of compliance failures, excessive charges, and incomplete refunds to scam victims. Massachusetts sued the company starting in February, citing insufficient anti-fraud protections. Additionally, enforcement actions have been taken by Maine, Missouri, and Iowa. The company is currently undergoing asset liquidation under court supervision.