AG Sues Bitcoin Depot for Facilitating Crypto Scams

Detected February 7th, 2026

Summary

The Massachusetts Attorney General has filed a lawsuit against Bitcoin Depot Inc. for allegedly using deceptive sales tactics, overcharging consumers, and facilitating crypto scams that resulted in over $10 million in losses. The AG seeks to prevent large transactions without additional fraud prevention and to refund harmed customers.

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Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against cryptocurrency kiosk operator Bitcoin Depot Inc. and Bitcoin Depot Operating LLC. The lawsuit alleges that Bitcoin Depot used misleading and deceptive sales tactics, overcharged consumers, knowingly facilitated crypto scams that defrauded Massachusetts consumers of over $10 million, refused refunds to scam victims, and misled investors about the extent of scam activity on its kiosks. The AG is seeking a court order to prevent Bitcoin Depot from accepting large transactions without enhanced fraud prevention measures and to compel refunds for harmed customers.

This action requires immediate attention from compliance officers overseeing operations involving cryptocurrency kiosks or similar financial services. Companies should review their sales tactics, fee structures, and fraud prevention protocols, particularly for large transactions. Failure to implement adequate safeguards and to address customer complaints regarding scams could lead to significant financial penalties and reputational damage. The AG's office is seeking to recover funds for victims and impose new operational requirements on Bitcoin Depot, setting a precedent for other entities in the crypto space.

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Allie Zuliani, Deputy Press Secretary

Phone

Call Allie Zuliani, Deputy Press Secretary at (617) 727-2543

Online

Email Allie Zuliani, Deputy Press Secretary at Allie.Zuliani@mass.gov

Boston — Massachusetts Attorney General Andrea Joy Campbell today filed a lawsuit against cryptocurrency kiosk operator Bitcoin Depot Inc. and Bitcoin Depot Operating LLC (Bitcoin Depot) for allegedly using misleading and deceptive sales tactics to overcharge consumers, knowingly facilitating crypto scams that robbed Massachusetts consumers of millions of dollars, refusing to issue refunds to scam victims, and deceiving investors about the level of scam activity on Bitcoin Depot kiosks.

With this lawsuit, AG Campbell is seeking a court order to prevent Bitcoin Depot from accepting large transactions without taking additional steps to prevent fraud in addition to refunding monies to harmed customers.

“Massachusetts consumers deserve to feel safe when they handle their hard-earned money, no matter the technology involved. With this lawsuit, 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 that robbed Massachusetts consumers of more than $10 million dollars – all while removing safeguards against fraud and misleading investors in order to line their own pockets,” said AG Campbell. “I will continue to stand up for consumers and hold accountable anyone who enables fraud within our state.”

Bitcoin Depot owns more than 8,000 crypto kiosks throughout the country, including hundreds in Massachusetts. The kiosks, otherwise known as Bitcoin ATMs, are often located in minimarts, gas stations or other businesses with long hours. Bitcoin Depot sells customers Bitcoin through its kiosks.

The Attorney General’s Office (AGO) alleges that Bitcoin Depot employees had warned the company that nearly all its large transactions were related to scams, to no avail. The AGO found that more than 80% of customers who had spent $10,000 or more at these Bitcoin Depot kiosks between August 2023 and January 2025, had utilized them in connection with scam transactions. Nearly 60% of Bitcoin Depot’s total Massachusetts-based revenue during this time period came from these scam transactions.

The AGO claims that despite Bitcoin Depot knowing about the high level of scam activity, the company removed safeguards against fraud by failing to ask questions of customers making large transactions that would help reveal fraud. When customers informed Bitcoin Depot that they had been scammed, the company often said that there was nothing it could do and refused even to provide refunds of its fees, even though it had kept up to 30% of the money that the customers put into the kiosks. In other cases, it gave customers a process for a refund but only returned a portion of the fees it collected.

The complaint also alleges the company misled consumers about the total price of their purchase by displaying lower Bitcoin prices at the beginning of a transaction and then adding hidden fees as the transaction went on, until the final Bitcoin price was much higher than the original displayed price. Bitcoin Depot applies a markup between 15% and 50% percent to all its kiosk transactions. On large transactions, this markup can generate thousands of dollars for the company.

Bitcoin Depot allegedly told investors that a risk of scam activity on its kiosks existed but omitted the fact that scam-based transactions were a major revenue generator for the company. In 2021, Bitcoin Depot’s employees estimated that 90% of its biggest customers were scam victims.

This matter was handled by Assistant Attorney General Mike Sugar, Advocate Attorney Caroline Lundy, Paralegal Kellin Cykes of AG Campbell’s Insurance and Financial Services Division and Senior Investigator Edward Cherubin and Investigator Benjamin Potter of AG Campbell’s Civil Investigations Division.

If you think you are the victim of unfair or deceptive practices related to investments and securities, you can file a consumer complaint here.

Allie Zuliani, Deputy Press Secretary

Phone

Call Allie Zuliani, Deputy Press Secretary at (617) 727-2543

Online

Email Allie Zuliani, Deputy Press Secretary at Allie.Zuliani@mass.gov

Allie Zuliani, Deputy Press Secretary

Phone

Call Allie Zuliani, Deputy Press Secretary at (617) 727-2543

Online

Email Allie Zuliani, Deputy Press Secretary at Allie.Zuliani@mass.gov

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