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The Attorney General of Massachusetts, Andrea Joy Campbell, has filed a lawsuit against Bitcoin Depot, one of the largest cryptocurrency kiosk operators in North America, accusing the company of knowingly facilitating cryptocurrency fraud and deceiving customers.
The prosecution claims that Bitcoin Depot deliberately misled clients for its own profit, resulting in losses exceeding $10 million. Over 80% of individuals who transferred at least $10,000 through Bitcoin Depot from August 2023 to January 2025 encountered fraud. The prosecution asserts that nearly 60% of the company’s revenue in Massachusetts during this timeframe was derived from fraudulent transactions.
The lawsuit states that employees of Bitcoin Depot alerted management that nearly all significant transactions involving their kiosks could be linked to fraudsters, but their warnings went unheeded. This indicates that Bitcoin Depot was aware that customers might be sending funds to criminals, yet it failed to implement protective measures, such as not asking additional questions to clients making large transactions. When customers reported to Bitcoin Depot that they had fallen victim to fraud, the operator took no action and refused to refund even the fees it had withheld from the deposited amounts (up to 30%). Occasionally, the company would only return a portion of the collected fees, Campbell stated.
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The complaint mentions that during transaction processing, the company added hidden fees, causing the final transaction amount to be significantly higher than the initial figure. Bitcoin Depot applies a markup ranging from 15% to 50% on all transactions at its kiosks, meaning that for large transactions, the company’s revenue can reach thousands of dollars, as noted in the document.
Prosecutor Campbell has requested that the court prohibit Bitcoin Depot from conducting large transactions without additional anti-fraud measures and has also demanded the return of funds to affected customers.
Last year, the Attorney General’s office of the District of Columbia filed a similar lawsuit against the kiosk operator Athena Bitcoin for failing to implement anti-fraud measures and for hidden fees. In July 2025, a law aimed at protecting cryptocurrency kiosk users from scammers came into effect in Iowa.
