Mass. AG sues bitcoin kiosk operator in connection with crypto scam worth $10 million

Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against a cryptocurrency kiosk operator that the AG says facilitated cryptocurrency scams.

According to the lawsuit, Bitcoin Depot used deceptive practices and overcharged customers, with the scheme ultimately costing Massachusetts users more than $10 million.

Bitcoin Depot operates more than 8,000 cryptocurrency kiosks nationwide, including hundreds in Massachusetts. The machines, often referred to as bitcoin ATMs, are located in convenience stores, gas stations and other businesses and are available for customers to conduct cryptocurrency transactions.

According to the lawsuit, company employees alerted management that most of the kiosks’ large transactions were tied to scams and no action was taken to protect consumers. An investigation conducted by the Attorney General’s Office found that more than 80% of customers who spent more than $10,000 at the kiosks over an 18-month span from 2023 to 2025 were involved in scam transactions.

The Attorney General’s Office believes that Bitcoin Depot knew about the high level of fraud and removed safeguards that would have warned consumers. The lawsuit also claims Bitcoin Depot refused to refund users’ fees despite keeping 30% of the money customers put into the kiosks.

In a statement, Campbell said the company had many opportunities to protect consumers and instead chose to profit off them.

“Massachusetts consumers deserve to feel safe when they handle their hard-earned money, no matter the technology involved,” Campbell said. “With this lawsuit, we’re alleging that instead of handling consumers’ money in good faith, Bitcoin Depot used misleading sales tactics to overcharge its customers and knowingly facilitated crypto scams that robbed Massachusetts consumers of more than $10 million dollars – all while removing safeguards against fraud and misleading investors in order to line their own pockets.”

The Attorney General’s Office said that among “hundreds” of Massachusetts users who had spent $10,000 or more at the Bitcoin Depot kiosks — with transactions totaling $10.6 million — more than 80% were involved in scams. The AG’s investigation found fewer than 10 customers who may have been using the kiosks for legitimate transactions.