The company’s continued weak performance has regulators concerned
Connecticut regulators have temporarily halted operations of Bitcoin Depot, a major US cryptocurrency ATM provider, citing multiple alleged violations of state law. The Connecticut Banking Commissioner, through the Consumer Credit Division, issued a cease-and-desist order on March 9, suspending the company’s money transmission license. The action highlights growing scrutiny on crypto businesses amid increasing regulatory pressure.
The order claims Bitcoin Depot failed to maintain minimum net worth requirements, charged excessive fees, and did not fully refund customers affected by scams. Officials said these issues violate the Connecticut Money Transmission Act and pose risks to consumers using the company’s services. The suspension comes while the company navigates regulatory challenges in multiple states.
Bitcoin Depot reported weak financial results for 2025, with full-year revenue of $615 million, up 7% from 2024, but net income fell to $5.1 million from $7.8 million. Fourth-quarter revenue declined to $116 million from $136.8 million a year earlier, partly due to stricter state regulations and enhanced compliance measures. The company warned that revenue in 2026 could drop 30% to 40% because of ongoing regulatory changes.
The company also faces legal actions elsewhere. In February, the Massachusetts Attorney General sued Bitcoin Depot, alleging it facilitated crypto scams. Iowa filed a similar complaint in 2025, accusing the company of failing to protect consumers from ATM-related fraud. Maine reached a $1.9 million consent agreement with Bitcoin Depot to compensate scammed customers and ensure compliance with licensing rules.
Bitcoin Depot’s stock has been severely impacted, falling 91% from its June 2025 high of $45.40. The share price has dropped 56% year-to-date, closing at $4.06 recently. Amid these challenges, the company also announced the resignation of Chief Operating Officer Elizabeth Simer, though no reason was provided.
