Connecticut halts Bitcoin Depot over compliance violations

Connecticut suspended Bitcoin Depot’s license for excessive fees and compliance failures, forcing a halt to its ATM operations. The move signals increased regulatory scrutiny for the crypto ATM industry.

Connecticut regulators have suspended Bitcoin Depot’s money transmission license, requiring the company to cease all cryptocurrency ATM operations in the state. This action follows an investigation that found Bitcoin Depot charged transaction fees above Connecticut’s 15% legal cap, failed to provide full refunds to fraud victims, and did not meet certain disclosure and compliance standards. More than 1,000 transactions resulted in about $150,000 in excess fees, impacting over 500 consumers. The Connecticut Department of Banking’s enforcement order, confirmed on March 9, mandates Bitcoin Depot to immediately disable its kiosks statewide. Bitcoin Depot, which operates thousands of ATMs nationwide, also disclosed anticipated “material weaknesses” in its internal controls, though it stated these would not affect previously reported financials. Following the announcement, the company’s stock price fell and its 2026 revenue outlook was revised downward. This regulatory move signals growing scrutiny of the crypto ATM sector, with other states potentially considering similar actions.