Massachusetts AG Sues Bitcoin Depot Over Alleged Crypto Scam Facilitation
On Tuesday, February 3, 2026, Massachusetts Attorney General Andrea Joy Campbell announced that she has filed a lawsuit against cryptocurrency kiosk operator Bitcoin Depot Inc. and Bitcoin Depot Operating LLC, collectively known as Bitcoin Depot.
The lawsuit alleges that the company engaged in misleading and deceptive sales practices, knowingly facilitated cryptocurrency scams that defrauded Massachusetts consumers of millions of dollars, refused to issue refunds to scam victims, and deceived investors regarding the extent of scam activity occurring on its kiosks.
The Attorney General’s Office (AGO) is seeking a court order to prevent Bitcoin Depot from processing large transactions without implementing additional fraud prevention measures. Furthermore, the lawsuit aims to secure refunds for affected customers.
According to Attorney General Campbell, the lawsuit asserts that Bitcoin Depot prioritized profit over consumer protection by employing deceptive tactics to overcharge customers and knowingly enabling cryptocurrency scams, resulting in losses exceeding $10 million for Massachusetts residents. She emphasized her commitment to holding accountable those who facilitate fraud within the state.
Bitcoin Depot operates over 8,000 cryptocurrency kiosks across the United States, including hundreds in Massachusetts. These kiosks, often referred to as Bitcoin ATMs, are typically located in convenience stores, gas stations, and other businesses with extended operating hours, allowing customers to purchase Bitcoin.
The AGO alleges that Bitcoin Depot was aware of the prevalence of scam-related transactions occurring at its kiosks. Internal warnings from employees indicated that a significant portion of large transactions were linked to scams. The AGO’s investigation revealed that over 80% of customers who spent $10,000 or more at Bitcoin Depot kiosks between August 2023 and January 2025 were involved in scam transactions. These transactions accounted for nearly 60% of Bitcoin Depot’s total revenue generated in Massachusetts during that period.
Despite this knowledge, the AGO claims that Bitcoin Depot removed fraud prevention measures, such as questioning customers making large transactions. When customers reported being scammed, the company allegedly denied responsibility and refused to provide refunds, even for the fees it retained, which could amount to 30% of the transaction value. In some instances, partial refunds of fees were offered.
The lawsuit further alleges that Bitcoin Depot misled consumers by displaying lower Bitcoin prices at the beginning of transactions and subsequently adding hidden fees, resulting in a significantly higher final price. Bitcoin Depot applies markups ranging from 15% to 50% on all kiosk transactions, potentially generating thousands of dollars in revenue from large transactions.
Additionally, Bitcoin Depot is accused of misleading investors by acknowledging the risk of scam activity on its kiosks but failing to disclose that scam-based transactions were a substantial source of revenue for the company. In 2021, Bitcoin Depot employees estimated that 90% of its largest customers were victims of scams.
