In short
- Maine regulators have secured $1.9 million for customers defrauded via Bitcoin Depot ATMs in a settlement.
- The settlement adopted a two-year investigation.
- The settlement comes amid a nationwide crackdown on crypto ATMs.
Maine regulators have reached a $1.9 million settlement with Bitcoin Depot, resolving a two-year investigation into rip-off losses tied to the corporate’s cryptocurrency kiosks and returning funds to customers who have been defrauded by third-party scammers.
The consent settlement, introduced Monday by the Maine Bureau of Client Credit score Safety, requires Bitcoin Depot to compensate Maine residents for fraudulent transactions performed via its machines. As a part of the deal, the corporate was additionally granted a cash transmitter license, permitting it to function legally within the state, though Maine is just not listed amongst its lively areas on the corporate’s web site.
“I’m grateful that our Bureau of Client Credit score Safety secured this settlement that may put a reimbursement into the pockets of Maine individuals who have been defrauded by predatory third-party scammers,” Governor Janet Mills stated in a press release, urging residents to speak with family members about avoiding more and more subtle fraud schemes.
Crypto ATM scams
Individuals reported $246 million in losses linked to crypto ATMs in 2024, a 99% improve from the prior 12 months, based on FBI information, with about 43% of these losses tied to victims over age 60.
Scammers usually direct victims to withdraw money, convert it into cryptocurrency at kiosks, and ship funds to fraudsters impersonating authorities officers, companies or tech assist staff. There are over 30,000 crypto kiosks within the U.S. alone.
Crypto kiosks have confronted heightened scrutiny throughout the U.S. as lawmakers, regulators and native governments transfer to rein within the machines. Critics argue that the irreversible nature of crypto transactions and opaque payment constructions go away customers, notably older adults, uncovered. Operators have countered that kiosks present respectable entry to digital belongings for money customers.
Maine’s motion follows a sequence of regulatory and authorized strikes elsewhere. Attorneys common in Iowa and Washington, D.C., have sued main operators—Bitcoin Depot and CoinFlip in Iowa, and Athena Bitcoin in Washington, D.C.—difficult hidden charges and insufficient shopper protections.
On the federal degree, Sen. Dick Durbin of Illinois launched laws final 12 months aimed toward capping transactions and mandating refunds for rip-off victims, whereas states have enacted or proposed limits, licensing necessities and warning disclosures.
In June final 12 months, Maine itself introduced in emergency laws, “An Act to Regulate Digital Foreign money Kiosks,” that limits each day transaction quantities, caps charges and gives recourse for customers.
Internationally, New Zealand banned crypto ATMs outright as a part of efforts to curb felony finance and the UK requires registration with the Monetary Conduct Authority, which up to now has not granted approval to any operators.
Bitcoin Depot, based in 2016 and now led by President Scott Buchanan after founder Brandon Mintz stepped down as CEO at the beginning of this 12 months, operates greater than 9,000 kiosks throughout North America. It additionally has kiosks in Australia, Canada, Hong Kong and Mexico.
Beneath the Maine settlement, the corporate has additionally agreed to conform absolutely with state shopper safety legal guidelines. Bitcoin Depot has been approached for remark.
