Bitcoin Depot, a major U.S. cryptocurrency ATM provider, faces a severe regulatory and financial crisis. The Connecticut Banking Commissioner issued a temporary cease-and-desist order, suspending its license and alleging violations of state law. This action coincides with a steep stock decline and a significantly weakened revenue outlook for 2026, as the company deals with lawsuits and settlements in multiple states.
Publicly traded crypto ATM operator Bitcoin Depot is confronting intense regulatory scrutiny alongside a plummeting stock price. The Connecticut Banking Commissioner issued a temporary order on March 9, summarily suspending the company’s money transmission license.
The order cites alleged violations including failure to maintain minimum net worth and incomplete refunds to scam victims. This follows the company’s disclosure of a lowered 2026 revenue outlook and a 56% year-to-date stock decline.
Bitcoin Depot reported full-year 2025 revenue of $615 million, a 7% increase from 2024. However, its net income fell to $5.1 million from $7.8 million the prior year.
Fourth-quarter revenue dropped to $116 million from $136.8 million a year earlier. The company attributed this decline to newly enacted state regulations and enhanced compliance measures.
The firm warned of a significantly weaker revenue outlook for the coming year. “The Company expects revenue for the core business in 2026 to be down in the range of 30% to 40%,” stated its earnings release.
It cited the dynamic regulatory environment and enhanced compliance standards for the forecast. In a separate filing, the company also disclosed the resignation of Chief Operating Officer Elizabeth Simer.
The Connecticut action adds to a growing list of state enforcement actions. In February, the Massachusetts Attorney General filed a lawsuit alleging the company facilitated crypto scams.
Bitcoin Depot was also sued in Iowa in February 2025. Attorney General Brenna Bird accused the company and CoinFlip of failing to protect consumers from scams.
The company entered a $1.9 million consent agreement with Maine’s Bureau of Consumer Credit Protection in January. The agreement required compensation for scammed consumers and compliance with state rules.
The company’s stock has declined 91% since hitting $45.4 in June 2025. It closed at $4.06 on the Tuesday following the earnings report.
