CoinDesk | Bitcoin Depot, the largest bitcoin ATM operator in North America, has filed for Chapter 11 bankruptcy.

The company has blamed increasingly stringent state regulations and enforcement for making its business model unsustainable. These regulations have been put in place to protect customers from scams and fraud. Many fraud and scam crimes instruct victims to deposit money through crypto ATMs on false pretenses. For instance, victims are told they are paying a ransom, resolving a court fee, making an investment, or safeguarding their money from criminals.

Bitcoin Depot is facing a high-profile lawsuit led by attorneys general in Massachusetts and Iowa over allegations that it facilitated crypto scams. Crypto ATM fraud hit a record $389 million in reported losses last year, a 58% increase from 2024, drawing increased scrutiny from regulators and prosecutors.

The company blamed regulation for its decline. “States have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations; and operators have faced increasing litigation and regulatory enforcement,” Alex Holmes, CEO of Bitcoin Depot, said in the press release.

Bitcoin Depot’s entire ATM network has already been taken offline. At one point last year, the company operated 9,276 kiosks in retail locations in the U.S., Canada, and Australia. The company’s Canadian entities are included in the U.S. court-supervised bankruptcy process.

Full article: Bitcoin Depot, North America's largest bitcoin ATM operator, files for bankruptcy