Retired Couple Sues Bitcoin Depot Over $76K ATM Scam Amid Bankruptcy
An Idaho couple is suing Bitcoin Depot, alleging the crypto ATM operator enabled scammers to drain their $76,000 life savings through its machines.
A retired Idaho couple has filed a federal class-action lawsuit against Bitcoin Depot Inc., accusing the cryptocurrency ATM operator of facilitating a scam that led to the loss of their $76,000 life savings. Plaintiffs Karen and Robert Lacey claim that fraudsters, posing as Norton customer service and FBI agents, deceived them into depositing cash into Bitcoin Depot ATMs over five consecutive days in August 2025.
The lawsuit, lodged on May 11, 2026, in the U.S. District Court for the District of Idaho, asserts that Bitcoin Depot processed these substantial transactions without meaningful intervention. The complaint points to alleged red flags that were overlooked, such as first-time users making large cash deposits while on active phone calls with unknown parties. Additionally, the suit criticizes the company's reliance on on-screen warning stickers as ineffective and highlights transaction fees that could reach up to 50%. After the Laceys' son reported the incident, Bitcoin Depot issued two $1,000 refund checks, an amount the lawsuit claims did not even cover the fees charged.
Bitcoin Depot's Financial Challenges
This legal action coincides with significant financial turmoil for Bitcoin Depot. The company filed for voluntary Chapter 11 bankruptcy on May 18, 2026, subsequently ceasing operations for its entire network of over 9,000 ATMs across North America. This bankruptcy declaration followed earlier setbacks, including a reported $3.6 million Bitcoin theft from its own wallets in March 2026 and a substantial 49.2% decline in revenue during the first quarter of 2026.
The lawsuit also references Bitcoin Depot's own SEC filings, which acknowledge the potential for their services to be used for fraudulent activities and admit that their risk management might be insufficient. Federal Trade Commission data indicates a nearly tenfold increase in Bitcoin ATM fraud losses between 2020 and 2023, with the FBI reporting over $333 million lost to such scams in 2025 alone. The Laceys are seeking a jury trial, injunctive relief, compensatory and punitive damages, restitution of fees, and attorney's fees.
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