Bitcoin Depot has shut down its entire crypto ATM network, ending the operation of about 9,276 kiosks across the United States, Canada, and Australia. The Nasdaq-listed operator has also sought Chapter 11 bankruptcy protection in the United States.
The closure comes as the company faces a combination of tougher state rules, major fraud-related lawsuits, and sharply weaker financial results. Bitcoin Depot plans to permanently cease operations and sell assets through the bankruptcy process.
Financial Decline Preceded the Shutdown
Bitcoin Depot’s financial position had already deteriorated before the network was switched off. Revenue fell 49% year on year in the first quarter of 2026.
The company reported a US$9.5 million loss, compared with a US$12.2 million profit in the previous period. Gross profit also dropped 85% to US$45 million, according to figures reported by CNBC Indonesia.
| Indicator | First Quarter of 2026 | Year-on-Year Change |
|---|---|---|
| Revenue | Not detailed | Down 49% |
| Profit/loss | US$9.5 million loss | From US$12.2 million profit |
| Gross profit | US$45 million | Down 85% |
The kiosks had allowed customers to convert cash into Bitcoin. Their removal marks a major retreat for a business model built around direct access to digital assets through physical machines.
Stricter Compliance Rules Changed the Business
Chief Executive Alex Holmes said regulatory changes had made Bitcoin Depot’s business model unsustainable. States have introduced tighter compliance requirements, new transaction limits, and in some jurisdictions restrictions or outright bans on Bitcoin ATM operations.
In a press release cited by CoinDesk, Holmes said, “Under the current conditions, the company’s business model cannot survive.” He also pointed to rising litigation and regulatory enforcement affecting operators.
The Atlanta-based company filed its voluntary bankruptcy petition with the US Bankruptcy Court for the Southern District of Texas on Monday (18/5). Bitcoin Depot’s Canadian entity has also been included in the US bankruptcy proceedings.
Fraud Allegations Add to Legal Pressure
Bitcoin Depot is facing major lawsuits from the attorneys general of Massachusetts and Iowa. The company has been accused of facilitating crypto fraud through its ATM network.
Scrutiny of crypto ATMs has increased after losses linked to crypto ATM scams reached a record US$389 million last year. That figure was said to be 58% higher than in 2024.
The case highlights the legal risks facing businesses that connect cash payments with digital assets. Transaction rules are no longer the only concern, as operators also face greater scrutiny over potential misuse by fraudsters.
Subsidiaries in other countries will be wound down gradually under local legal requirements. The bankruptcy arrives as institutional crypto adoption expands through products such as ETFs, while crypto ATM operators face increasingly heavy oversight.
