Bitcoin Depot, once the largest Bitcoin ATM operator in North America with a network of nearly 9,000 kiosks, is shutting down operations after mounting regulatory pressures and legal challenges pushed the Bitcoin ATM operator into Chapter 11 bankruptcy proceedings.
The company is listed on the Nasdaq Stock Exchange He said On Monday, it filed a voluntary petition with the US Bankruptcy Court for the Southern District of Texas to facilitate the orderly liquidation and sale of assets.
This news comes on the heels of Bitcoin Depot’s reportConstant anxiety“, which was released after it reported a sharp decline in revenue and mounting regulatory issues. The company said that ongoing legal disputes and compliance burdens could threaten its long-term viability.
The Bitcoin ATM operator reported preliminary first-quarter revenue of about $83.5 million, down 49% year over year, while recording a net loss of $9.5 million. Bitcoin Depot said changes in regulation and enhanced compliance measures have reduced the volume of transactions across its network of kiosks.
Meanwhile, the company is dealing with lawsuits from regulators in multiple states over allegations that its ATMs failed to adequately prevent fraud and scams. The warning comes amid increasing scrutiny of cryptocurrency ATMs in the United States, as authorities have linked the machines to a growing number of fraud cases targeting consumers, including the elderly.
CEO Alex Holmes claimed that stricter compliance requirements, transaction limits, regulatory enforcement actions, and outright restrictions on the Bitcoin ATM business in some jurisdictions have severely hurt the company’s financial position.
Holmes noted that Bitcoin Depot had foot Stronger fraud prevention measures over time, including improved identity verification systems, customer warnings, and lower transaction limits. However, he said the current regulatory climate made the company’s operating model no longer viable.
Bitcoin Depot’s ATM network has been taken offline, and the company’s Canadian entities are participating in a U.S.-supervised restructuring. It is expected that other international subsidiaries will be closed under local legal frameworks.
