Maine Reaches $1.9M Settlement With Bitcoin ATM Operator Over Scam Losses
Maine regulators reached a $1.9 million settlement with Bitcoin Depot after a two-year investigation into scam losses involving its cryptocurrency kiosks. Bitcoin Depot agreed to compensate Maine residents defrauded through its machines and was granted a money transmitter license to operate legally in the state. The move addresses rising concerns as Americans reported $246 million in crypto ATM losses in 2024—a 99% increase from the previous year—with much of the fraud affecting seniors. Scammers commonly instruct victims to convert cash to cryptocurrency at kiosks and send funds to impostors. Over 30,000 crypto kiosks operate in the U.S., drawing regulatory scrutiny for irreversible transactions and lack of consumer protections. Maine and other states have enacted or proposed regulations, including transaction limits, fee caps, and disclosure requirements. Federal legislation has been introduced to enhance protections, while other countries, like New Zealand, have banned crypto ATMs or imposed licensing requirements. Bitcoin Depot, active in North America and internationally, also agreed to comply with Maine's consumer protection laws as part of the settlement.
