The world's largest crypto ATM operator, Bitcoin Depot, files for bankruptcy, with all 9,700 machines taken offline.

Author: Ben Dooley

Translation: Deep Tide TechFlow

Deep Tide Guide: Once widespread across convenience stores in the United States, crypto ATMs are collectively retreating under regulatory pressure. The world's largest crypto ATM operator, Bitcoin Depot, filed for bankruptcy protection on May 18, shutting down approximately 9,700 machines. The direct reasons are the increasingly strict transaction limits, license suspensions, and anti-fraud lawsuits enacted by various states—FBI data shows that consumers lost $389 million through crypto ATMs in 2025. This report from ICIJ (International Consortium of Investigative Journalists) reviews the entire process of this publicly traded company’s expansion and collapse.

Caption: On April 6, 2026, inside a convenience store in Haverhill, Massachusetts, a police officer is disconnecting the power to a Bitcoin Depot ATM.

Image source: Jessica Rinaldi/The Boston Globe via Getty Images

Bitcoin Depot was once the world's largest crypto ATM operator, officially filing for bankruptcy protection on May 18. This company, long accused of facilitating scams, has dealt another heavy blow to the industry.

CEO Alex Holmes issued a statement on the company's website saying that all approximately 9,700 crypto ATMs under its control have been taken offline and will cease operations.

Holmes attributed the cause to "increasingly strict compliance requirements, including new transaction limits, and some jurisdictions imposing direct restrictions or bans on crypto ATMs," which made the company's business model unsustainable.

Over the past year, local and state governments across the U.S. have significantly tightened regulations on crypto ATMs. These machines function similarly to bank ATMs but are used to exchange cash for cryptocurrency. Fearing these machines could become tools for scams, regulators have launched investigations into operators.

FBI data shows that in 2025, consumers lost $389 million to scams via crypto ATMs. Scammers use these machines to quickly transfer victims' funds overseas, outside the reach of U.S. law enforcement.

Six months of multi-state crackdown, quarterly revenue nearly halved

As the largest crypto ATM operator, Bitcoin Depot has become a target of 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; Missouri’s attorney general launched investigations into the company and other crypto ATM businesses; Nevada and Maine reached enforcement settlements requiring fines and compliance with state rules. Massachusetts Attorney General directly sued Bitcoin Depot, accusing most of its revenue of coming from crypto scams. The Iowa Attorney General’s Office also filed a lawsuit.

Reflected in financial reports, the numbers are shocking. A document submitted to the SEC earlier this month shows that quarterly revenue as of March plummeted nearly 50% year-over-year, mainly due to "state and municipal regulations banning or restricting crypto ATMs, capping fees, and limiting transaction amounts," as well as the company's own need to adopt "stricter" compliance and anti-fraud measures, such as strengthening KYC (Know Your Customer) procedures.

In February this year, the company announced that all transactions would require customer identity verification, making it harder for scammers to exploit these machines but also discouraging many users.

Legal troubles and mounting legal costs

While revenue has plummeted, Bitcoin Depot is also burdened with huge legal expenses. Bankruptcy filings show the company faces multiple lawsuits, all pointing to the same issue: insufficient measures to prevent scam transactions through its machines. Additionally, a 2025 arbitration ruling related to a dispute with its Canadian subsidiary resulted in nearly $19 million in damages.

ICIJ and CNN’s joint investigation in 2025 found that at least $1.5 million in scams were carried out through hundreds of Bitcoin Depot machines installed inside Circle K convenience stores. Bitcoin Depot paid millions of dollars in rent to Circle K and took a cut from each transaction.

The investigation revealed that Circle K management was aware of the issue but continued to cooperate with Bitcoin Depot.