Author of the news: Crypto Emergency

Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against Bitcoin Depot, one of the largest operators of cryptocurrency ATMs in North America. The company is accused of knowingly allowing fraudsters to use its terminals and misleading customers, leading to losses of more than $10 million.

Prosecutor: Bitcoin Depot was aware of the fraud but did nothing
According to the lawsuit:

• more than 80% of clients who transferred through Bitcoin Depot ATMs of $10,000 and above (August 2023 - January 2025) became victims of fraudsters;

• almost 60% of the company's revenue in Massachusetts during this period came from fraudulent transactions;

• employees repeatedly warned management about suspicious operations, but there was no response.

According to the prosecutor, the company did not take basic protective measures:

• did not ask clients clarifying questions for large transfers;
• ignored reports from victims about fraud;
• refused to return even withheld commissions, which reached up to 30%.

Sometimes Bitcoin Depot returned only a small portion of the commissions.

Hidden fees and inflated markups
The lawsuit also states that the company:

• added hidden fees during transactions,
• applied a markup of 15% to 50%,
• increased the final cost of transactions by thousands of dollars for large transfers.

Prosecutor's demands
Attorney General Campbell demands:

• to prohibit Bitcoin Depot from conducting large transactions without additional protective measures,

• to obligate the company to return money to affected clients.

Not the first case: ATMs under the scrutiny of regulators
This is not the only lawsuit against ATM operators:

• last year, the District of Columbia prosecutor filed a similar lawsuit against Athena Bitcoin,
• in Iowa, a law aimed at protecting ATM users from fraudsters came into force in July 2025.

Regulators are increasingly paying attention to ATMs as one of the most vulnerable channels for financial crimes.

#bitcoin #CryptoATM #Cryptoscam #CryptoNews #blockchain