Bitcoin Depot Faces Lawsuit Over Alleged Facilitation of Cryptocurrency Scams

Bitcoin Depot, one of the world's largest operators of cryptocurrency ATMs (crypto ATMs), is facing increased scrutiny over its business practices. The Massachusetts Attorney General's office has filed a lawsuit against the company, alleging that it knowingly facilitated cryptocurrency scams in the state.

According to the complaint, more than half of the money passing through Bitcoin Depot kiosks in Massachusetts between August 2023 and January 2025 was scam-related. This is not the first time a state attorney general has taken action against the company, with Iowa's AG filing a similar lawsuit in 2025.

The industry has grown rapidly since its inception in the early 2010s, with crypto ATMs becoming increasingly popular in gas stations, liquor shops, and convenience stores. However, law enforcement officers have reported an explosion in fraud involving these machines, with scammers using them as a quick and easy way to move victims' funds beyond the reach of authorities.