people · May 20, 2026
Bitcoin Depot Files for Chapter 11 Bankruptcy and Shuts Down Bitcoin ATM Network
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Bitcoin Depot, once North America's largest Bitcoin ATM operator and Nasdaq-listed company, filed for Chapter 11 bankruptcy on May 18, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate an orderly wind-down and asset sale after taking its entire network offline. The company cited mounting regulatory pressure including stricter compliance rules, lower transaction limits, lawsuits, enforcement actions, and bans in some states, with CEO Alex Holmes noting these changes made the business unsustainable. It reported preliminary first-quarter results showing a 49 percent revenue collapse and a shift to a $9.5 million loss from a $12.2 million profit, with gross profit down 85 percent to $4.5 million. The filing encompasses operations in Canada and follows a lawsuit by Massachusetts and Iowa attorneys general alleging facilitation of crypto scams amid $389 million in crypto ATM fraud losses in 2025, up 58 percent from 2024.