Bitcoin was supposed to cut out the middleman. Instead, it’s become a middleman’s dream for scammers.
In 2025 alone, Americans lost more than $330 million to bitcoin ATM scams, according to FBI data, a sharp rise fueled by urgency, impersonation, and technology many consumers barely understand. Now, one of the country’s largest crypto kiosk operators is paying the price.
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Bitcoin Depot, which operates more than 25,000 bitcoin ATMs across the U.S., has agreed to pay $1.9 million to the state of Maine as part of a settlement designed to compensate residents who were scammed using its machines (1). The company did not admit wrongdoing, but the agreement spotlights a fast-growing form of financial fraud.
What Bitcoin Depot agreed to do — and why it’s paying
Under the settlement, Bitcoin Depot will pay Maine nearly $2 million, representing money that state officials say was taken by third-party scammers who used the company’s kiosks to defraud consumers. Victims will be able to apply for compensation through the state, which will distribute the funds.
Bitcoin Depot has refused comment, but under the terms of the settlement avoided any admission of liability. Still, the company’s kiosks were the mechanism that allowed scammers to turn fear and confusion into irreversible cash transfers. Bitcoin Depot is also facing a separate challenge in Iowa (2), suggesting Maine’s case may not be the last challenge the industry faces.
Why bitcoin ATM scams are exploding nationwide
Bitcoin was designed to cut out the middleman in transactions by letting people send money directly to one another without going through a bank, credit card company or payment processor.
Instead of a bank verifying and recording a transaction, bitcoin relies on a decentralized network of computers to confirm it and permanently log it on a public digital ledger known as the blockchain. In theory, that means fewer fees, faster transfers, and no central authority that can block or reverse a payment. The tradeoff, however, is that there’s no built-in customer service or fraud protection. Once a bitcoin transaction is sent, it’s final, even if it was triggered by a scam.
That finality has driven a dramatic surge in losses. In 2025, Americans lost more than $333 million specifically to bitcoin ATM scams (3), according to data cited by ABC News from the FBI. Older adults and first-time crypto users are disproportionately targeted, in part because scammers exploit unfamiliarity with digital currency and pressure victims to act quickly.
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How bitcoin ATM scams actually work
Most bitcoin ATM scams follow a predictable and effective script.
A scammer contacts the victim pretending to be someone authoritative, such as a bank employee, the IRS, law enforcement, a utility company or a tech support agent. The message is urgent: there’s suspicious activity, unpaid taxes, a hacked account or a frozen bank balance that must be fixed immediately.
The victim is told the safest way to resolve the issue is to “secure” their money by converting it to bitcoin. The scammer then walks them through the process step by step, directing them to withdraw cash, visit a specific bitcoin ATM and scan a QR code that sends the cryptocurrency directly to the scammer’s wallet.
By the time the victim realizes the story doesn’t add up, the money has already moved, often overseas, and recovery is unlikely.
“If you had to listen to it, you would wonder, ‘What’s going on with that woman? Doesn’t she realize what they’re doing to her?’ No, you don’t,” Texas bitcoin scam victim Fran Bates, 85, told ABC News after losing $40,000 to a scammer who convinced her that she needed to safeguard her cash by putting it in a bitcoin machine (4).
How to protect yourself — and what to do if you’re targeted
There’s one simple rule consumers should remember: legitimate organizations do not demand payment through bitcoin ATMs. Any request involving urgency, secrecy or instructions to convert cash into cryptocurrency should immediately raise suspicion.
If a caller pressures you to act quickly, insists you keep the transaction confidential, or stays on the phone while directing you to an ATM, it’s almost certainly a scam. Pausing, calling the organization back using a verified phone number or talking the situation through with a trusted friend or family member can stop a costly mistake.
Anyone who believes they’ve been targeted should report the incident to local law enforcement, file a complaint with the FBI’s Internet Crime Complaint Center (5), and contact their state attorney general’s office to ask whether restitution programs are available.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
State of Maine (1); Des Moines Register (2); ABC News (3, 4); Internet Crime Complaint Center (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.