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Bitcoin Depot Files for Chapter 11, Shuts Down 9,000 Bitcoin ATMs

State crackdowns over kiosk fraud made the high-fee ATM model unworkable.

Overview

  • Bitcoin Depot, which filed for Chapter 11 in the Southern District of Texas on Monday, began a court‑supervised wind‑down and asset sale.
  • The company took its entire kiosk network offline and folded Canadian entities into the U.S. case, with other non‑U.S. units set to close under local laws.
  • Preliminary first‑quarter 2026 results showed revenue down 49.2%, gross profit at $4.5 million after an 85.5% drop, and a $9.5 million net loss following a going‑concern warning.
  • CEO Alex Holmes blamed tighter state rules that added transaction caps, license actions and bans in Indiana, Tennessee and Minnesota, alongside lawsuits from Massachusetts and Iowa and a Connecticut suspension.
  • The collapse followed an April cybertheft of about $3.7 million and a surge in kiosk‑linked fraud that the FBI says cost $389 million in 2025, leaving some users with unconfirmed transactions to pursue guidance through the bankruptcy process.