Bitcoin Depot suspends operations in Connecticut as Bitcoin ATMs face further compliance issues

Gate News, March 18 — Regulatory authorities in Connecticut have ordered Bitcoin Depot to suspend its remittance business license and immediately cease all Bitcoin ATM operations. The regulators pointed out multiple violations related to fee charges, information disclosure, and fraud refund mechanisms.

Specifically, the authorities found that Bitcoin Depot charged fees exceeding the legal limit of 15% in over 1,000 transactions, involving more than 500 users, resulting in an overcharge of approximately $150,000. Additionally, the company failed to provide full refunds to some users who were scammed through its devices. There were also clear deficiencies in information disclosure and compliance controls.

As a result, Bitcoin Depot has been instructed to stop related operations, refund improper gains, and may face fines or license revocation. The remittance license is crucial for its legal operation of Bitcoin ATMs; losing it would directly impact its business presence in the state.

Meanwhile, Bitcoin Depot admitted in filings with the U.S. Securities and Exchange Commission (SEC) that there are still unresolved “material weaknesses” in its internal controls. However, the company stated these issues have not had a material impact on its past financial statements.

In terms of market performance, the company’s stock has continued to decline, dropping about 39% over the past month and down 55% year-to-date. Although it projects full-year revenue to reach approximately $615 million by 2025, its latest quarterly revenue fell from about $137 million to $116 million, with a net loss of around $25 million.

Analysts note that this regulatory action poses a structural shock to Bitcoin Depot. Tiger Research analyst Ryan Yoon believes this reflects the difficulty of maintaining a high-profit model under strict regulatory environments; Zeus Research’s Dominick John suggests that the incident is more about operational and reputational pressure, but emphasizes the need to quickly repair compliance systems.

Industry observers believe this case may prompt further tightening of Bitcoin ATM regulations across U.S. states, with far-reaching impacts on the entire crypto payment and offline entry markets.