Quick Answer: Massachusetts Attorney General Andrea Joy Campbell has sued Bitcoin Depot — the largest Bitcoin ATM operator in the U.S. — alleging the company knowingly profited from scams that cost Massachusetts consumers over $10 million. According to the lawsuit, 80% of customers who spent $10,000 or more at Bitcoin Depot kiosks were scam victims, and the company kept up to 30% of their money in fees.
If someone tells you to go to a Bitcoin ATM and deposit cash, you are being scammed. Full stop. It doesn’t matter who they say they are — the IRS, your bank, the police, a judge, your grandchild. No legitimate entity will ever ask you to pay them in Bitcoin through a kiosk.
When a company knows 80% of its big customers are fraud victims and keeps taking their money anyway, that’s not a business model — that’s exploitation.— Steve Rhode
What Massachusetts Found
AG Campbell’s lawsuit filed February 3, 2026 lays out damning allegations against Bitcoin Depot Inc.:
The key allegations:
- Knew about the scams and did nothing. Bitcoin Depot employees warned the company that nearly all large transactions were scam-related. The company ignored them.
- Removed fraud safeguards. Instead of adding protections, Bitcoin Depot stopped asking questions of customers making large transactions — questions that would have revealed fraud.
- Refused refunds to victims. When customers reported they’d been scammed, the company told them there was nothing it could do — while keeping up to 30% of the deposited money in fees.
- Hid the true cost. The company marked up transactions between 15% and 50% and added hidden fees that inflated the final Bitcoin price.
- Deceived investors. Bitcoin Depot allegedly misled its own investors about the level of scam activity on its kiosks.
AG Campbell stated: “Massachusetts consumers deserve to feel safe handling hard-earned money…I will continue to stand up for consumers.”
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This Is a National Problem
Massachusetts isn’t alone. The FBI reports that Americans lost $333.5 million to Bitcoin ATM scams in 2025 alone — up 33% from $250 million in 2024. Over 10,000 people were victimized.
The growth is alarming. According to FBI data reported by Tom’s Hardware:
- 2023: $114 million in losses
- 2024: $250 million in losses
- 2025: $333.5 million in losses
The FBI calls it a “clear and constant rise” that is “not slowing down.”
Elderly Victims Hit Hardest: According to a 2024 FBI report cited by AARP, adults over 60 accounted for more than 85% of reported fraud losses from crypto kiosks. Scammers are now using AI-generated voice cloning to impersonate family members in distress.
How the Scam Works
The pattern is almost always the same:
- You get a call or text from someone claiming to be your bank, the IRS, Social Security, law enforcement, or even a family member in trouble.
- They create urgency. You owe taxes. Your account has been compromised. Your grandchild was arrested. You must act NOW.
- They tell you to withdraw cash from your bank account.
- They direct you to a specific Bitcoin ATM and give you a QR code to scan.
- You insert cash, scan the code, and the money is gone. It goes directly to the scammer’s crypto wallet — irreversibly.
There are over 45,000 Bitcoin ATMs nationwide. A transaction takes minutes. And once the money is sent, it’s virtually impossible to recover.
The Dogma: “The Bitcoin ATM company is just a neutral platform — they can’t control what people do with their money.”
The Reality: When 80% of your high-value transactions are fraud and 60% of your revenue comes from scam victims, you’re not a neutral platform. You’re profiting from crime. Maine already secured a $1.9 million settlement from Bitcoin Depot for exactly this reason.
Other States Are Acting Too
- Maine: Secured a $1.9 million settlement from Bitcoin Depot and implemented daily transaction limits and fee caps
- Washington, D.C.: Sued Athena Bitcoin, claiming 93% of transactions on its devices were fraud (median victim age: 71)
- Iowa: Has a separate lawsuit pending against Bitcoin Depot
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How to Protect Yourself and Your Family
- No legitimate entity will ever ask you to pay via Bitcoin ATM. Not the IRS. Not your bank. Not law enforcement. Not the courts. Period.
- Hang up and call back directly. If someone claims to be from your bank or the government, hang up. Look up the real number yourself and call them.
- Talk to elderly family members. Share this article. The median victim age in these scams is 71 years old.
- If you’ve been scammed, report it. File with the FBI’s IC3, your state attorney general, and the FTC at reportfraud.ftc.gov.
- Don’t be ashamed. These scammers are professionals. They use fear, urgency, and now AI voice cloning to manipulate people. Being scammed doesn’t make you stupid — it makes you human.
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Key Takeaways
- Massachusetts AG sued Bitcoin Depot for knowingly profiting from scams — the lawsuit alleges 80% of customers who spent $10,000 or more were scam victims
- FBI reports $333.5 million lost to Bitcoin ATM scams in 2025, up 33% from 2024
- People over 60 account for 85% of crypto kiosk fraud losses
- No legitimate organization will ever ask you to pay via Bitcoin ATM
- Multiple states are suing Bitcoin ATM operators and implementing regulations
- If you’ve been scammed, report to IC3.gov, your state AG, and the FTC
Frequently Asked Questions
What is a Bitcoin ATM scam?
Scammers contact victims by phone, text, or email pretending to be a trusted authority — the IRS, their bank, law enforcement, or even a family member. They create a false sense of urgency and instruct the victim to withdraw cash and deposit it into a Bitcoin ATM using a QR code the scammer provides. The money goes directly to the scammer’s cryptocurrency wallet and is virtually impossible to recover.
Why is Massachusetts suing Bitcoin Depot specifically?
According to the AG’s lawsuit, Bitcoin Depot knew that the vast majority of its large transactions were scam-related, its own employees warned the company, yet it removed fraud safeguards, refused refunds to victims, and continued profiting from fees as high as 30% on each transaction.
How much money have people lost to Bitcoin ATM scams?
The FBI reports $333.5 million in losses in 2025 alone, up from $250 million in 2024 and $114 million in 2023. The actual amount is likely higher since many victims don’t report their losses.
Who is most at risk for Bitcoin ATM scams?
According to AARP citing FBI data, adults over 60 account for more than 85% of reported fraud losses from crypto kiosks. Scammers increasingly use AI-generated voice cloning to impersonate family members in fake emergency situations.
What should I do if I’ve already been scammed at a Bitcoin ATM?
Report the fraud immediately to the FBI’s Internet Crime Complaint Center (IC3), your state attorney general, and the FTC at reportfraud.ftc.gov. While recovering cryptocurrency is difficult, reporting helps law enforcement track patterns and build cases against scam operations and negligent kiosk operators.
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