Massachusetts Attorney General Sues Bitcoin Depot Over Crypto Scam Facilitation
Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against Bitcoin Depot Inc. And Bitcoin Depot Operating LLC (Bitcoin Depot), alleging the company knowingly facilitated cryptocurrency scams that robbed Massachusetts consumers of millions of dollars, and employed misleading sales tactics to overcharge customers. The lawsuit, filed on February 3, 2026, marks a significant escalation in scrutiny of crypto ATM operators.
Allegations Against Bitcoin Depot
The Attorney General’s Office alleges that Bitcoin Depot was aware of the high prevalence of scams involving its kiosks. According to the complaint, nearly all transactions at Bitcoin Depot kiosks were related to scams. The suit claims the company failed to protect consumers and actively contributed to financial losses.
Specifically, the complaint details that between August 2023 and January 2025, over half of the money processed through Bitcoin Depot kiosks in Massachusetts was linked to fraudulent activity. Massachusetts residents lost at least $77 million in Bitcoin ATM scams in 2025 alone .
Extent of the Problem
The issue extends beyond Massachusetts. The FBI received nearly 11,000 fraud complaints involving crypto ATMs in 2024, a 99% increase from the previous year, representing approximately $247 million in alleged losses . This trend continued in 2025, with reported losses reaching around $333 million between January and November .
Industry Response and Internal Warnings
Bitcoin Depot maintains that it has “built our business around compliance and consumer protection” and works with law enforcement to address criminal activity . The company recently announced it would require customer identity verification for all transactions.
However, the Massachusetts complaint alleges that as early as 2021, Bitcoin Depot’s own due diligence team found 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 compliance measures “less effective,” thereby increasing the risk of fraud.
Circle K Connection
An investigation by the International Consortium of Investigative Journalists (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 from the partnership and took a percentage of each transaction, ranging from 15% to 50% . The investigation also found that Circle K management was aware of the fraudulent activity but renewed its contract with Bitcoin Depot.
Other States Capture Action
Massachusetts is not alone in investigating Bitcoin Depot. Iowa’s Attorney General filed a similar lawsuit in 2025, finding that over 50% of the company’s transactions in the state between October 2021 and July 2024 appeared to involve scams. Missouri’s Attorney General also launched an investigation in December 2025, requesting evidence related to potential violations of consumer protection laws .
The Attorney General’s Office stated that hundreds of Massachusetts users spent $10,000 or more at Bitcoin Depot kiosks, totaling $10.6 million .