Bitcoin Depot, once the biggest Bitcoin ATM operator in North America, has filed for Chapter 11 bankruptcy after growing legal problems and tougher rules badly hurt its business.
The Nasdaq-listed company said it chose to start bankruptcy proceedings in a Texas court as part of plans to close operations and sell what’s left. This comes after months of money problems caused by fewer transactions and higher costs to follow rules.
Bitcoin Depot used to run about 9,000 crypto ATM machines across North America. But regulators in several US states said the company did not do enough to stop fraud and scams involving these ATMs, especially those targeting older people.
The company reported first-quarter income of about $83.5 million, a steep 49% drop from the year before. It also had a net loss of around $9.5 million during that time.
Chief Executive Alex Holmes said tougher rules, lower transaction limits, and more requirements to follow laws made the company’s business model unsustainable. Bitcoin Depot had added stronger ID checks and fraud prevention, but leaders said these steps were not enough to handle the regulatory pressure.
Authorities across North America Authorities across North America have been paying more attention to crypto ATMs because of growing worries about scams, money laundering, and protecting consumers.
Bitcoin Depot Inc., once the largest operator of crypto ATMs in North America, filed for bankruptcy on Monday, marking the latest major blow for a niche segment of the digital asset industry that has been in decline for several years. https://t.co/9rMNMcgdLK
— Bloomberg (@business) May 18, 2026
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