Bitcoin Depot filed Chapter 11 bankruptcy, shutting down 9,000+ kiosks globally amid fraud, bans, and fee pressures.
Bitcoin Depot, one of the largest Bitcoin ATM operators in the United States, filed for Chapter 11 bankruptcy protection on May 18 in the Southern District of Texas. The company announced it would wind down all operations and sell off its assets, with its network of over 9,000 kiosks worldwide going offline the same day. An SEC disclosure from May 12 had already signaled financial distress. The collapse reflects broader pressures battering the US Bitcoin ATM industry, including rising fraud incidents that have prompted consumer complaints and regulatory scrutiny, outright bans in certain jurisdictions, and high transaction fees that have made the machines increasingly unattractive to users. Bitcoin Depot's failure marks a significant moment for the physical crypto access market, raising questions about the long-term viability of cash-to-crypto kiosk businesses operating under tightening legal and competitive conditions.
— Sponsored —
Trade smarter on BYDFI
Deposit $20,000 and claim a $2,000 bonus — up to 200x leverage, 600+ perpetuals, deep liquidity.