BOSTON – Massachusetts Attorney General Andrea Joy Campbell filed a lawsuit on February 3 against Bitcoin Depot Inc. And Bitcoin Depot Operating LLC, alleging the cryptocurrency kiosk operator knowingly facilitated crypto scams that robbed Massachusetts consumers of more than $10 million. The suit claims the company also used misleading sales tactics to overcharge customers.
The legal action, the latest in a growing wave of scrutiny towards crypto ATM operators, alleges Bitcoin Depot failed to act in good faith when handling consumer funds. According to the complaint, over half of the $10.6 million in transactions processed through Bitcoin Depot kiosks in Massachusetts between August 2023 and January 2025 were linked to scams, as reported by MassLive.
The lawsuit arrives as federal authorities report a surge in fraud involving crypto ATMs. The FBI received nearly 11,000 complaints related to these machines in 2024, a 99% increase from the previous year, representing approximately $247 million in alleged losses. That figure has continued to climb, with around $333 million lost between January and November 2025, according to the Attorney General’s office.
“We’re alleging that instead of handling consumers’ money in good faith, Bitcoin Depot used misleading sales tactics to overcharge its customers and knowingly facilitated crypto scams,” Campbell said in a press release. “This resulted in Massachusetts consumers being robbed of more than $10 million dollars.”
The rise of crypto ATMs – found primarily in locations like gas stations, liquor stores, and convenience stores – has coincided with an increase in sophisticated fraud schemes, particularly targeting the elderly. Scammers exploit the machines’ ability to quickly convert cash into cryptocurrency, making it difficult for law enforcement to recover stolen funds.
Bitcoin Depot, one of the largest operators of these machines, disputes the allegations. In a statement to the International Consortium of Investigative Journalists (ICIJ), the company stated, “We strongly disagree with the characterization that Bitcoin Depot facilitates scams or misleads users.” The company maintains it has “built our business around compliance and consumer protection” and actively works with law enforcement to address criminal activity. ICIJ reported on the company’s response.
Despite its public statements, the Massachusetts complaint alleges that internal Bitcoin Depot due diligence teams identified in 2021 that 90% of customers they interacted with were likely scam victims. One employee reportedly warned a top executive that the kiosks were facilitating money laundering “at an ‘extreme volume.’” The complaint further alleges that the company subsequently made changes to its compliance measures that “facilitated more fraud.”
The allegations against Bitcoin Depot mirror a similar lawsuit filed in 2025 by Iowa’s Attorney General, which found that more than 50% of the company’s transactions in that state between October 2021 and July 2024 appeared to involve scams.
An investigation by ICIJ and CNN revealed that Bitcoin Depot machines installed in hundreds of Circle K convenience stores facilitated at least $1.5 million in scam transactions. Circle K received rental fees for hosting the machines and Bitcoin Depot took a percentage of each transaction, ranging from 15% to 50%. The investigation also found that Circle K management was aware the machines were being used to defraud customers, yet renewed its contract with Bitcoin Depot.
Missouri Attorney General Catherine Hanaway has also opened an investigation into Bitcoin Depot’s business practices, sending a letter in December demanding the company turn over evidence related to potential violations of state consumer protection laws. WCVB reported that Attorney General Campbell expressed hope of recovering funds for scam victims.
On Tuesday, Bitcoin Depot announced it would require customers to verify their identity for every transaction, a move that comes as state and local legislators consider tighter safeguards or outright bans on the use of crypto ATMs. The Massachusetts lawsuit remains ongoing, with the outcome potentially setting a precedent for future legal challenges against crypto ATM operators nationwide.
