Maine”s regulators have successfully negotiated a $1.9 million settlement with Bitcoin Depot, marking the conclusion of a two-year investigation focused on scam-related losses linked to the operator”s cryptocurrency kiosks. This agreement, revealed on Monday by the Maine Bureau of Consumer Credit Protection, mandates Bitcoin Depot to reimburse residents who fell victim to fraudulent transactions executed through their machines.
As part of this settlement, Bitcoin Depot has also been granted a money transmitter license, permitting its legal operation within the state. However, it is noteworthy that Maine is not currently listed among the company”s active locations on their official website. Governor Janet Mills commented on the development, expressing gratitude for the bureau”s efforts in securing funds for consumers duped by deceptive third-party scammers. She emphasized the importance of educating residents about sophisticated fraud tactics.
In the broader context, cryptocurrency ATM scams have reached alarming levels, with reports indicating that Americans incurred losses totaling $246 million in 2024. This figure represents a staggering 99% increase compared to the previous year, as noted by data from the FBI. Disturbingly, approximately 43% of these losses involved victims aged 60 and above, highlighting the vulnerability of older adults to such schemes.
Scammers typically manipulate victims into withdrawing cash, converting it into cryptocurrency at kiosks, and subsequently sending the funds to fraudsters masquerading as government officials or tech support representatives. There are currently over 30,000 cryptocurrency kiosks operating in the United States.
This settlement comes amid intensified scrutiny of cryptocurrency kiosks across the nation, as lawmakers and local authorities aim to regulate these machines more effectively. Critics argue that the irreversible nature of cryptocurrency transactions, coupled with unclear fee structures, leaves consumers, particularly elderly individuals, at considerable risk. In response, operators maintain that these kiosks provide essential access to digital assets for users who prefer cash transactions.
Maine”s actions align with a national trend as various states and regulatory bodies take steps to hold operators accountable. Notably, attorneys general in states such as Iowa and Washington, D.C., have initiated lawsuits against major players like Bitcoin Depot and CoinFlip, challenging hidden fees and insufficient consumer protections. At the federal level, Senator Dick Durbin of Illinois has introduced legislation aimed at capping transaction limits and mandating refunds for victims of scams.
Additionally, Maine”s recent emergency legislation, titled “An Act to Regulate Virtual Currency Kiosks,” imposes daily transaction limits, caps fees, and ensures consumer recourse. Internationally, measures vary, with New Zealand instituting an outright ban on crypto ATMs to combat criminal financing, while the UK requires operators to register with the Financial Conduct Authority, which has yet to approve any applications.
Founded in 2016, Bitcoin Depot, now led by President Scott Buchanan, operates more than 9,000 kiosks throughout North America, with additional locations in Australia, Canada, Hong Kong, and Mexico. Under the terms of the settlement in Maine, the company has committed to full compliance with state consumer protection laws. Bitcoin Depot has been contacted for further comments regarding this settlement.
