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The first U.S. state has prohibited the operation of Bitcoin Depot kiosks., 2026/03/18 14:59:48
The banking commissioner of Connecticut has prohibited the operations of one of the largest U.S. cryptocurrency kiosk operators, Bitcoin Depot. The company has lost its money transfer license in the state, and its machines will no longer be operational.
The formal reason for the suspension is cited as violations of local money transfer regulations. The commissioner’s order mentions: failure to meet minimum capital requirements, excessive fees, and incomplete reimbursements to customers who fell victim to fraudulent schemes.
The prohibitory document was issued just days before Bitcoin Depot released its annual financial results. Revenue for 2025 reached $615 million, reflecting a 7% increase compared to 2024; however, net profit decreased from $7.8 million to $5.1 million. The company also anticipates a revenue decline of 30–40% in 2026 due to stricter regulations for kiosk operators.
Bitcoin Depot has faced lawsuits in several states. In February, the Massachusetts Attorney General filed a lawsuit against the company, accusing it of facilitating cryptocurrency fraud.
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In January, the company entered into a $1.9 million settlement with the Maine Bureau of Consumer Protection. Under the terms of the agreement, Bitcoin Depot is required to compensate customers who suffered losses due to fraud involving its kiosks and to adhere to local licensing regulations.
According to the FBI, in 2025, fraudsters stole over $333 million from U.S. residents using cryptocurrency kiosks.
At the end of last year, Bitcoin Depot’s network comprised more than 8,400 devices across the U.S. Since mid-last year, Bitcoin Depot’s stock has plummeted by 91%, from a peak of $45.4 to $4.06. This year, the company announced staff reductions. On March 11, it was reported that the Chief Operating Officer of Bitcoin Depot had resigned.
At the end of February, the operator announced that identification would now be mandatory for all transactions.
