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Bankruptcy of the US’s largest crypto ATM operator: shares plummet by 73%
Bitcoin Depot, a crypto ATM operator which last year controlled the largest network of Bitcoin ATMs in North America, has filed for Chapter 11 bankruptcy protection. The company has shut down more than 9,000 of its crypto ATMs in the US and halted international financial operations, including in Canada. All of the company’s overseas divisions will be closed in accordance with the laws of their respective jurisdictions.
The Attorneys General of the US states of Iowa and Massachusetts have filed over 13,400 complaints in the case and brought charges against Bitcoin Depot for hidden fees, inadequate protection of users’ personal data, and knowingly facilitating crypto fraud. All users of crypto ATMs are advised to check the status of pending transactions, as some transactions will be subject to court-supervised settlement due to Bitcoin Depot’s bankruptcy.
Furthermore, following an incident in April 2026, when hackers attacked Bitcoin Depot’s internal IT system, a division of the US State Department was forced to freeze crypto assets worth approximately $3.7 million. According to information available to law enforcement agencies, in 2025 alone, US citizens lost $389 million due to crypto ATM scams. Due to fake crypto exchanges, cryptocurrency scams and other cybercrimes – $9.3 billion in 2024 and $11.366 billion in 2025, respectively.
Bitcoin Depot’s management directly blamed the US regulatory system. The platform’s CEO, Alex Holmes, stated that strict state requirements had rendered their business model ‘unviable’ and that the model had become ‘incompatible with the new rules’, referring to the tightening of KYC/AML controls, limits on cryptocurrency transaction amounts, and the ban on crypto ATMs in a number of US states.
For investors, the current situation serves as a warning. The vast majority of ‘hybrid’ services, which combine and process cash transactions and digital assets, remain extremely vulnerable to excessive regulatory pressure. Despite the convenience of such platforms for quickly converting cryptocurrencies into fiat (USD, UAH, EUR) or vice versa (USDT, BTC, ETH), operating within the legal framework with large volumes of cash requires customer identification to prevent money laundering.
Consequently, the market is becoming increasingly dependent not on the Bitcoin price, but on the policies of regulators who demand transparent financial reporting, control over the origin of funds, and genuine client protection. Investors should therefore reassess the risks in the physical crypto-infrastructure sector, whilst crypto-infrastructure companies need to review their strategy regarding Bitcoin.
As a reminder: Bitcoin Depot was founded in 2016 in Atlanta and expanded rapidly on the wave of crypto investment growth. In 2023, Bitcoin Depot listed on the Nasdaq, positioning itself as the fastest ‘bridge between cash and cryptocurrency’. Its ATMs operated in Australia and across 47 US states, with an extensive network also in Canada (up to 1,400 crypto ATMs). In early 2026, the company’s revenue plummeted by 49.2% and its net loss reached $9.5 million. Subsequently, Bitcoin Depot’s shares lost around 73% of their value.
