New England States Take Action Against Cryptocurrency ATM Operators
BOSTON — In response to a rise in fraud cases linked to virtual currency ATMs, several New England states are now striving to regulate these operators, as victims across the United States face losses amounting to hundreds of millions of dollars.
Massachusetts has initiated a lawsuit against Bitcoin Depot, recognized as one of the leading cryptocurrency kiosk companies in the country. The state accuses the firm of engaging in deceptive practices and failing to protect consumers. This legal action follows a nearly $2 million settlement reached by Maine with Bitcoin Depot earlier this year.
The Massachusetts Attorney General’s Office filed the lawsuit against Bitcoin Depot just earlier this month. The company has thousands of cryptocurrency kiosks functioning nationwide.
“This lawsuit claims that Bitcoin Depot acted without integrity, using misleading tactics to overcharge customers while facilitating a cryptocurrency scam that exploited over $10 million from Massachusetts residents, all to benefit financially,” said AG Andrea Joy Campbell in a statement.
Bitcoin Depot, on its part, has expressed strong disagreement with the lawsuit’s claims.
“We are looking closely at the Attorney General’s allegations and are focused on ensuring our customers’ safety while providing secure access to cryptocurrencies,” the company stated.
The fraud linked to Bitcoin ATMs is growing rapidly in the United States. Scammers often guide their victims to deposit cash at these kiosks under false pretenses, such as impersonation or fake emergencies.
Once individuals transfer cryptocurrencies, recovering those funds can be nearly impossible.
“The extent of this issue, once fully revealed, will be stunning,” remarked Ed Mislik from the Maine Consumer Credit Protection Bureau. “The impact could total billions, affecting thousands in Maine alone.”
Mislik noted that cryptocurrency technology allows fraudsters to stay anonymous and transfer funds swiftly using digital wallets.
“If a victim is shown a QR code, criminals can immediately access those funds without any checks,” Mislik explained.
This lawsuit by Massachusetts represents a continued effort to mitigate these issues and enhance consumer protections.
Last spring, Maine passed a significant law known as the Remittance Modernization Act, which included a unique “Non-hosted wallet” rule. This legislation mandates that cryptocurrency companies verify that digital wallets receiving funds genuinely belong to their customers.
Earlier in the year, Maine and Bitcoin Depot reached a settlement totaling nearly $2 million, aimed at providing refunds to affected consumers.
Claims can be submitted via the Consumer Credit Protection Bureau website, and refunds are set to begin in May 2026 after all claims are evaluated. The refund amount will depend on the number of valid claims and confirmed losses.
In response to these developments, Bitcoin Depot has removed all its kiosks from Maine.
“At one time, there were about 80 kiosks in Maine,” Mislik noted. “I haven’t noticed any replacements for the ones removed by the company.”
Maine has also enacted several new bills aimed specifically at cryptocurrency ATMs, including trading restrictions, licensing requirements for operators, and mandated refunds for fraud victims.
