Thousands of ATMs Shut Down and Go Bankrupt Due to Government Actions

Bitcoin Depot has ceased its services and filed for bankruptcy in a United States Bankruptcy Court. The Bitcoin ATM giant blames state regulations for the collapse of its business. “States are imposing increasingly strict compliance obligations, including new transaction limits, and in some jurisdictions, restrictions or outright bans on BTM (Bitcoin ATM) operations. Operators are facing increased litigation and regulatory enforcement,” said Alex Holmes, CEO of Bitcoin Depot, in a press release. He added that the newly implemented rules have impacted not only the business but also the company’s finances, stating that the company’s business model cannot survive under these conditions. “The latest regulatory developments have impacted the business and finances of Bitcoin Depot. Under current conditions, the company’s business model cannot be sustained,” he explained. Bitcoin Depot had previously faced lawsuits in Massachusetts and Iowa, where the company was accused of facilitating crypto fraud. Crypto fraud is drawing significant attention from regulators and prosecutors, as losses from crypto ATM scams reached a record US$389 million last year, a 58% increase from 2024. Bitcoin Depot once operated 9,276 ATM kiosks, allowing customers to convert cash into crypto in parts of the US, Canada, and Australia. For the bankruptcy process, entities located in Canada have also been included in the US proceedings, while those outside the US will be gradually shut down in accordance with applicable laws in each country. Bitcoin Depot’s performance report for the first quarter of 2026 had indeed deteriorated. The company reported a 49% decline in revenue compared to the previous year. Furthermore, the company suffered a loss of US$9.5 million, a reversal from a previous profit of US$12.2 million. Gross profit was US$45 million, a plunge of 85%.