Bitcoin Depot will begin verifying customers’ identities every time they use its ATMs, voluntarily fine-tuning its compliance procedures in the face of growing pressure from state prosecutors.
The move marks a “significant advancement” in Bitcoin Depot’s efforts to prevent fraud and other illicit activities, the Atlanta-based company said in a statement. press release. The company began implementing the policy in a phased manner earlier this month, she added.
By making personal IDs mandatory for every transaction, the company is trying to curb account sharing, identity theft and account takeover attempts, he said. In October, Bitcoin Depot began requiring customers to provide credentials when first using its services.
“Verifying identity at every transaction helps us detect patterns that might not show up during onboarding,” said CEO Scott Buchanan. Decrypt. “Bitcoin Depot takes this matter very seriously as we continue to prioritize customer trust and security.”
The company that operates 8,800 ATMs in North America saw its stock price fall 6.7% Tuesday to $5.37, according to Yahoo Finance. Its shares have fallen 80% in the past six months.
Bitcoin Depot says it enables broader access to digital assets by allowing customers to buy Bitcoin with cash through its machines, but prosecutors in Massachusetts and Iowa are among those who have alleged the company knowingly profits from scams against the elderly.
In 2025, Americans lost $333 million to crypto ATM fraud, according to the FBI. And last year, a report. report from AARP revealed that 14 states have passed laws targeting crypto ATMs, with states like California and Texas imposing strict transaction limits.
Fraudsters are increasingly targeting older people using Bitcoin ATMs due to the irreversible nature of transactions on the asset’s network. They often trick victims into sending them funds under the guise of “government payments” or “technical support” before disappearing.
In a lawsuit filed earlier this month, Massachusetts Attorney General Andrea Campbell suggested that Bitcoin Depot knowingly facilitated crypto scams, “while removing safeguards against fraud and misleading investors in order to line their own pockets.”
The complaint states that customers were only required to provide a phone number when purchasing small amounts of Bitcoin before Bitcoin Depot revised its policy in October.
Like the trial brought. brought Per the Iowa Attorney General v. Bitcoin Depot last year, Campbell alleged that Bitcoin Depot customers were subjected to hidden markups. However, the lawsuit filed in Massachusetts is separate because it asks a court to force Bitcoin Depot to adapt its operations.
As part of the lawsuit, Campbell requested that Bitcoin Depot be prohibited from accepting transactions worth more than $10,000 “without taking additional steps to prevent fraud,” such as asking a series of questions to identify fraud risks and establishing a refund process for victims.
Last year, the Iowa Supreme Court governed that Bitcoin Depot was allowed to keep cash deposited into its ATMs following scams. The determination was based on the fact that customers must certify that they own the wallet receiving Bitcoin in order to transact.
However, the company agreed to return funds to scam victims in Maine last month, following a $1.9 million settlement agreement with the state’s Consumer Credit Protection Bureau.
Although Bitcoin Depot works with law enforcement to help them potentially identify scammers, confusion can sometimes arise. This includes a case last year where Texas authorities crack into one of the company’s ATMs with power tools in an attempt to recover funds.
