Settlement with Bitcoin Depot
In a significant resolution to a lengthy investigation, regulators in Maine have finalized a $1.9 million settlement with Bitcoin Depot, a cryptocurrency kiosk operator. This settlement addresses fraudulent activities associated with the company’s machines that have defrauded consumers through third-party scams. The announcement, made by the Maine Bureau of Consumer Credit Protection on Monday, comes as a relief to many Western Maine residents who fell victim to scams involving Bitcoin transactions.
Consumer Reimbursement and Licensing
As part of the consent agreement, Bitcoin Depot is obligated to reimburse affected consumers who experienced losses from fraudulent transactions at its kiosks. In addition to financial compensation, this agreement permits the company to hold a money transmitter license, allowing it to legally operate within the state despite not currently listing any active locations on its website.
Government Response and Community Awareness
Maine Governor Janet Mills expressed her appreciation for the efforts made by the Bureau, stating,
“I am grateful that our Bureau of Consumer Credit Protection secured this agreement that will put money back into the pockets of Maine people who were defrauded by predatory third-party scammers.”
She emphasized the importance of community awareness regarding evolving fraud schemes, particularly in discussions among families.
Rising Cryptocurrency Fraud
The issue of cryptocurrency-related fraud is on the rise. According to recent FBI findings, Americans lost approximately $246 million due to scams linked to crypto ATMs in 2024, marking an alarming 99% increase from 2023. Notably, around 43% of these losses were reported by individuals aged 60 and older. Scammers typically lure victims into withdrawing cash, using it to purchase cryptocurrency at kiosks, and then directing the victims to send the funds to impersonators posing as officials or tech support.
Regulatory Scrutiny and Legislative Actions
The proliferation of crypto kiosks—over 30,000 across the U.S.—has prompted heightened scrutiny from regulators and lawmakers nationwide. Critics of these machines argue that their fee structures and the irreversible nature of cryptocurrency transactions leave vulnerable populations, especially seniors, at risk of exploitation. Supporters of the kiosks maintain they offer a legitimate way for cash users to access digital currencies.
Maine’s settlement aligns with broader regulatory actions taking place across the country. Authorities in Iowa and Washington, D.C., have initiated lawsuits against major players in the industry, including Bitcoin Depot and CoinFlip in Iowa, while Athena Bitcoin faces similar challenges in Washington, D.C., over undisclosed fees and lack of consumer protections. On a federal level, legislation led by Senator Dick Durbin is working its way through Congress, aimed at implementing transaction caps and ensuring refunds for scam victims.
International Perspectives and Company Background
Maine itself has passed legislation to regulate virtual currency kiosks, establishing limits on daily transaction amounts and fees while providing consumer recourse. Internationally, countries are taking varying approaches, with New Zealand outright banning crypto ATMs to combat criminal financing and the UK insisting on strict registration requirements that have prevented any operators from gaining approval.
Founded in 2016, Bitcoin Depot, which boasts over 9,000 kiosks across North America and additional locations in Australia, Canada, Hong Kong, and Mexico, is led by President Scott Buchanan after its founder, Brandon Mintz, stepped down as CEO earlier this year. As part of the agreement with Maine, Bitcoin Depot has committed to fully adhering to state consumer protection regulations. The company has yet to release a public comment regarding the settlement.
