Bitcoin Depot, which initiated legal proceedings against the cities of St. Paul and Stillwater last year due to bans on cryptocurrency machines, has decided to drop its lawsuits. This decision coincides with ongoing discussions in the Minnesota Legislature regarding a potential statewide ban on cryptocurrency kiosks.
During a closed session on Tuesday, the Stillwater City Council was informed about the dismissal of the lawsuit, as confirmed by City Administrator Joe Kohlmann. The order of dismissal was officially filed in Washington County District Court. A similar outcome is anticipated for the St. Paul lawsuit, with court documents indicating that a stipulation of dismissal was entered in Ramsey County District Court.
Minnesota lawmakers are actively considering legislation that would prohibit cryptocurrency kiosks throughout the state. The proposed ban enjoys bipartisan support, having passed the Senate with a significant majority of 57-10. A companion bill presently awaits consideration in the House, backed by both Democratic-Farmer-Labor and Republican representatives.
Proponents of the legislation highlight the risks associated with cryptocurrency kiosks, particularly their potential to defraud users. A recent FBI internet crime report for 2024 revealed that individuals aged 60 and above are especially susceptible, reporting losses exceeding $100 million. As of November 2025, at least 50 scam incidents tied to these machines in Minnesota have resulted in estimated losses of around $700,000.
Senator Hemmingsen-Jaeger, DFL-Woodbury, emphasized the importance of consumer fraud protection in a recent statement, noting that cryptocurrency scams have adversely affected many vulnerable residents who have lost substantial amounts of money. He remarked, “In an instant, that money is gone with very little chance of recovery.”
The Minnesota Department of Commerce has recommended imposing restrictions on virtual currency kiosks due to the heightened risk of fraud they pose. Investigators have noted the challenges in tracking funds stolen through these machines, as transactions converting cash to cryptocurrency remain anonymous.
Bitcoin Depot operates approximately 110 ATM-style virtual currency kiosks across Minnesota. The company filed a lawsuit against Stillwater in September, asserting that the ban would cause “irreparable harm” to residents by limiting their access to virtual currency services. The lawsuit contended that prohibiting these services in Stillwater could lead to the loss of the company’s business license or potential criminal penalties, despite state authorization for their operation.
In response to the bans, Bitcoin Depot dismissed its Stillwater lawsuit “without prejudice and on the merits,” meaning no costs or attorney fees would be awarded to either party. Subsequently, in December, the company filed a similar lawsuit against St. Paul following the City Council’s decision to ban cryptocurrency ATMs within its jurisdiction. St. Paul has seen the installation of at least 32 such machines in local convenience stores and shops, prompting scrutiny from law enforcement and others.
As of now, representatives from Bitcoin Depot have not responded to inquiries regarding their decision. City officials in Stillwater indicated that Bitcoin had “reconsidered its position and decided to withdraw its claims,” as conveyed by city attorney Korine Land.
