Maine Reaches $1.9M Settlement With Bitcoin ATM Operator Over Scam Losses

Maine’s Bureau of Consumer Credit Protection has announced a $1.9 million settlement with Bitcoin Depot, a company that operates cryptocurrency kiosks in the state. The agreement aims to recover funds from consumers who were scammed through these kiosks. Scammers used these machines to transfer cash into unhosted wallets, making it nearly impossible to trace or recover the stolen money.

The settlement is the result of a legal agreement requiring Bitcoin Depot to comply with Maine’s consumer protection laws as a licensed money transmitter. In addition to the financial recovery, the company must follow state guidelines to ensure that consumers retain control of their virtual wallets.

Governor Janet Mills has been a strong advocate for protecting Maine residents from cryptocurrency fraud. In 2024, she signed the Maine Money Transmission Modernization Act, which included provisions to safeguard consumers from unhosted wallet fraud. Later in 2025, she also signed emergency legislation to further regulate virtual currency kiosks, limiting daily transmission amounts and capping fees.

Why Did This Happen?

The rise in Bitcoin ATM fraud is part of a larger trend across the U.S. According to the FBI, Bitcoin ATM-related fraud reached a record $333 million in losses in 2025. Over 10,000 people were affected, with older adults being particularly vulnerable. Scammers often impersonate banks or government officials, tricking victims into sending cash via Bitcoin ATMs under false pretenses.

The FBI has attributed the surge in fraud to the rapid growth of Bitcoin ATMs, which now number over 45,000 in the U.S. These machines are often located in high-traffic areas like convenience stores and gas stations, making them easily accessible but also attractive to criminals.

How Did Markets Respond?

Regulators are now shifting from issuing warnings to enacting strict legislation to curb the spread of Bitcoin ATMs. The U.S. Department of Financial Protection and Innovation (DFPI) has increased its public guidance efforts to educate consumers about the risks. At the same time, Maine’s actions are part of a broader regulatory tightening in the U.S. to hold operators more accountable.

Bitcoin ATM fraud is not slowing down, according to the FBI. The agency has reported that losses from 2025 exceeded those of 2024 by nearly $80 million. The Federal Trade Commission (FTC) also noted in 2024 that cryptocurrency fraud tends to result in higher losses than traditional scams.

What Are Analysts Watching Next?

The Maine settlement may signal a model for other states to follow. The agreement includes a specific provision that requires Bitcoin operators to ensure users retain ownership of their wallets, a step that could reduce fraud in future transactions. If other states adopt similar rules, it could slow the spread of scams and increase consumer confidence in cryptocurrency transactions.

The regulatory focus on Bitcoin ATMs is also part of a larger global trend. South Korea is considering freezing unrealized crypto gains to curb market manipulation, while Japan has taken steps to integrate digital assets into its traditional financial system. These measures suggest that governments are increasingly viewing cryptocurrency as a legitimate financial product requiring the same level of oversight as stocks or bonds.

For now, the Maine settlement offers a small measure of justice for scam victims. Residents who lost money at Bitcoin Depot kiosks can submit claims until April 1 through the Bureau’s website. The success of this program may encourage more states to pursue legal action against operators involved in similar fraud.