Atlanta area firm with the most bitcoin ATMs in North America to shut down
Bitcoin Depot, a Sandy Springs-based company with cryptocurrency ATMs scattered across North America, filed for bankruptcy protection this week as it faced scrutiny from states over allegations its kiosks facilitated scams.
The company was in the vanguard of operating bitcoin teller machines, or BTMs, often inside convenience stores, touting its ability to bring people outside the mainstream of the financial system into the world of digital payments.
Multiple states, including Massachusetts and Iowa, have sued the company for allegedly facilitating crypto scams, often against retirees, that resulted in people losing millions of dollars. Other states have settled complaints with the company and instituted tighter regulations.
Earlier this year, Georgia lawmakers passed a bill with sweeping bipartisan majorities to institute limits and stronger consumer protections for some people who use crypto ATMs in the state.
Bitcoin Depot has denied wrongdoing in the various state complaints. But the Chapter 11 filing comes as mounting lawsuits and legislative challenges against the company’s business model made it “unsustainable,” Alex Holmes, CEO of Bitcoin Depot, said in a statement announcing the bankruptcy.
“Over time, the Company has continued to strengthen its protocols and procedures to combat fraud and protect the customers who use its BTMs, including enhanced identity verification, customer fraud warnings, and its more recent adoption of lower transaction limits for its customers,” Holmes said.
“Nevertheless, the regulatory environment for BTM operators has shifted significantly: states have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations; and operators have faced increasing litigation and regulatory enforcement. These developments have materially affected Bitcoin Depot’s business and financial position,” he continued.
The company’s revenue fell by more than $80 million, or nearly 50%, in the first three months of 2026 compared with last year, according to a filing with the Securities and Exchange Commission.
Bitcoin Depot did not respond to a request for an interview.
What is Bitcoin Depot?
Bitcoin Depot’s machines have often been found at convenience stores and gas stations. The company was founded in 2016 by Brandon Mintz.
How it works is that a customer puts cash into the machine, purchases an equivalent amount of bitcoin and then sends that to a digital wallet. Bitcoin Depot charges fees and takes a cut of the transaction.
“A large majority of our customers are unbanked people who have been out of the financial mainstream,” Mintz told The Atlanta Journal-Constitution in a 2020 interview. “This gives them the ability to have a digital wallet on their phone.”
Bitcoin Depot grew to become the largest operator of bitcoin kiosks in North America before its bankruptcy, with about 9,700 machines across the United States and Canada.
Now, it’s taken all of those offline as part of the bankruptcy process, the company said. More than 100 people in metro Atlanta are losing their jobs as Bitcoin Depot winds down its operations, according to a notice it filed with the state of Georgia.
Bitcoin Depot filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. Instead of restructuring its debt, the company said it planned for an orderly wind-down of its operation and sales of its assets.
Bitcoin Depot’s largest debt is a nearly $18.5 million legal judgment from late last year in a case filed by one of its former business partners alleging hardware and software performance issues, according to court documents. The company also owes millions in legal fees, profit share agreements and other services.
Crypto ATM scams
Cyndie Roberson, a Georgia-based member of the National Coalition Against Cryptomining, told the AJC that scammers often target elderly people by making them believe there’s a crisis that they need to fix by sending crypto through a bitcoin ATM.
“Elderly people and retired folks who have worked hard for their savings and the little that they have, … they’re conned,” Roberson said.
“(Scammers) find what scares them, and maybe it’s their grandson is in prison or something that makes them want to go and withdraw cash from a legitimate bank and put it into this machine,” she said.
Last year, there were more than 13,000 fraud complaints filed with the FBI involving crypto ATMs, resulting in $389 million lost, according to the agency, though it did not cite specific companies.
The vast majority of money lost was from victims that were 60 years or older.
About the Author
Mirtha Donastorg is a reporter on The Atlanta Journal-Constitution’s business team focusing on Black wealth, entrepreneurship, and minority-owned businesses as well as innovation at Atlanta’s HBCUs.
