Bitcoin Depot, once the largest Bitcoin ATM operator in North America, has filed for Chapter 11 bankruptcy protection as mounting regulatory pressure, falling revenue and rising scam-related scrutiny pushed the company toward an orderly shutdown.
The Nasdaq-listed company announced on May 18 that it had initiated voluntary bankruptcy proceedings in the Southern District of Texas and taken its ATM network offline.
The company said the filing is intended to support an “orderly wind-down” of operations and a sale of assets rather than a restructuring aimed at continuing business as usual. Canadian subsidiaries are also expected to restructure or shut down, while other international entities will wind down separately under local rules.
Bitcoin Depot had built one of the biggest crypto ATM networks in the world, operating roughly 9,000 kiosks across the United States and other markets. The company went public through a SPAC merger in 2023 and traded on Nasdaq under the ticker BTM.
The collapse follows a rapid deterioration in the company’s financial position. According to recent reports and company disclosures, Bitcoin Depot’s first-quarter 2026 revenue fell 49.2% year over year. The company also reported a net loss of approximately $9.5 million and disclosed a $3.7 million security breach earlier this year tied to unauthorized crypto transfers.
Days before filing for bankruptcy, the company warned investors that there was “substantial doubt” about its ability to continue operating.
CEO Alex Holmes said the business model had become unsustainable because of tighter regulations and increasing litigation. In recent years, multiple U.S. states introduced stricter compliance obligations for crypto ATM operators, including transaction caps, expanded identity verification requirements and enhanced anti-fraud procedures. Some jurisdictions also considered restrictions or outright bans on Bitcoin ATMs.
Crypto ATMs are facing tighter scrutiny over rising scams
The broader crypto ATM industry has faced increasing criticism over its role in scams. Law enforcement agencies and regulators have repeatedly warned that scammers often direct victims to Bitcoin ATMs because transactions are difficult to reverse and can move funds quickly.
Official data from the Federal Trade Commission shows losses linked to Bitcoin ATM scams rose sharply between 2020 and 2023. Reported consumer losses climbed from about $12 million in 2020 to more than $110 million in 2023, representing nearly a tenfold increase. In the first half of 2024 alone, reported losses exceeded $65 million.
The FTC said older adults were disproportionately affected, with consumers over 60 accounting for the majority of reported losses. Common schemes included government impersonation scams, tech support fraud and fake business-payment requests.
Crypto fraud overall also continued rising in 2025. According to FBI Internet Crime Complaint Center data, Americans lost approximately $11.4 billion to crypto-related scams in 2025, with crypto ATM fraud remaining a major concern for regulators and financial crime investigators.
How are other Bitcoin ATM operators faring?
Despite Bitcoin Depot’s collapse, several major crypto ATM operators remain active across North America, which is home to 89% of the global Bitcoin ATMs.
CoinFlip is currently one of the largest surviving networks, operating more than 4,000 machines across the United States. The company has faced regulatory scrutiny in multiple states over allegations tied to scam activity and consumer protection concerns, though it continues to operate nationwide while expanding compliance measures.
Coinme remains another major player in the market. Unlike many standalone ATM operators, Coinme has focused heavily on retail partnerships and regulated financial infrastructure. The company operates through kiosk integrations in supermarkets and convenience stores and has emphasized stricter identity verification and anti-money laundering controls.
Athena Bitcoin also continues to operate in the United States and Latin America. The company has reduced exposure in some markets while focusing on compliance and fraud prevention as legal scrutiny across the industry intensifies.
RockItCoin and Byte Federal remain active as well, though operators across the sector have increasingly shifted toward lower transaction limits, stronger customer verification and enhanced fraud monitoring systems.
Crypto ATM industry challenges
The industry’s challenges extend beyond regulation alone. Crypto ATMs often charge significantly higher fees than online exchanges, while mainstream crypto platforms and spot Bitcoin ETFs have made digital asset access easier for retail users. That has reduced some of the original demand for cash-to-crypto kiosks.
At the same time, compliance costs have risen sharply. Operators must now spend more on customer verification, transaction monitoring, cybersecurity and anti-fraud systems. Scam-related lawsuits and enforcement actions have added additional legal risks.
Bitcoin Depot’s bankruptcy is not the first sign of stress in the sector. Other crypto ATM businesses have entered restructuring or bankruptcy proceedings in recent years, including Cash Cloud, which filed for Chapter 11 protection in 2023.
The collapse of Bitcoin Depot, however, stands out because of the company’s size and market position. Its shutdown removes one of the most recognizable names in the crypto ATM business and raises fresh questions about whether the traditional Bitcoin ATM model can remain viable under stricter financial regulation and growing fraud concerns.
