Bitcoin Depot, formerly the largest operator of cryptocurrency ATMs in the United States, filed for voluntary Chapter 11 bankruptcy Sunday and took its roughly 9,700 kiosks offline, saying a wave of state restrictions and mounting litigation had rendered its business model unviable.

The Atlanta-based company, which trades on the Nasdaq under the ticker BTM, filed in the U.S. Bankruptcy Court for the Southern District of Texas. It said the proceeding will facilitate an orderly wind-down of operations and a sale of its assets. Canadian entities are included in the U.S. filing, with separate restructuring proceedings expected to follow in Canada.

CEO Alex Holmes said in a statement that Bitcoin Depot had worked to strengthen its anti-fraud protocols over time, including enhanced identity verification and lower transaction limits, but that the regulatory landscape had nonetheless shifted beyond what the company could sustain. “The Company’s current business model is unsustainable,” Holmes said.

The collapse comes after years of intensifying pressure from state and federal regulators who accused Bitcoin Depot of failing to prevent its machines from being used to defraud consumers. Crypto ATMs allow users to exchange cash for cryptocurrency at automated kiosks, a feature regulators and law enforcement said made them a preferred tool for scammers to rapidly move victims’ funds overseas. 

The FBI reported that consumers logged $389 million in losses tied to crypto ATM scams in 2025 alone, according to a report on the company’s closure by ICIJ.

Bitcoin Depot also faced enforcement actions across multiple states. Connecticut suspended the company’s banking license over anti-money-laundering control failures, while Nevada and Maine reached settlement agreements requiring fines and compliance measures, ICIJ reported. Missouri’s attorney general opened an investigation into the firm, and attorneys general in Massachusetts and Iowa filed lawsuits, with Massachusetts alleging that the bulk of Bitcoin Depot’s revenue was derived from scam transactions.

The company’s quarterly revenue fell nearly 50 percent year over year in the first quarter of 2026, driven by state and municipal bans, fee caps, and transaction size limits, according to SEC filings cited by ICIJ. The company also racked up significant legal fees across multiple fraud-related lawsuits, and in late 2025 was hit with a nearly $19 million arbitration award related to a Canadian subsidiary’s business dealings.

A 2025 investigation by ICIJ and CNN found that at least $1.5 million in scam transactions had passed through hundreds of Bitcoin Depot machines installed in Circle K convenience stores, with Circle K management aware of the problem but continuing the relationship regardless.