A retired couple from Idaho has initiated a federal class action lawsuit against Bitcoin Depot Inc., a now-bankrupt operator of cryptocurrency ATMs, alleging that the company profited from fraudulent activities and failed to safeguard its vulnerable consumers. In a complaint filed in U.S. District Court for the District of Idaho, Karen and Robert Lacey claimed that their entire retirement savings of $76,000 were siphoned away by fraudsters over a five-day span in August 2025.
The Laceys described how they were manipulated by scammers posing as Norton customer service representatives and FBI agents, who convinced them that their financial accounts were entangled in investigations related to child pornography and illegal gambling. The couple was instructed to deposit cash into Bitcoin Depot ATMs between August 9 and August 13, 2025. To further the deception, the fraudsters created a wireless network labeled “FBI” that appeared on the Laceys’ phones, a signal that remained visible for months following the transactions.
The 43-page lawsuit, identified as Lacey et al. v. Bitcoin Depot Inc., et al. (Case No. 1:26-cv-00288-DKG), alleges that Bitcoin Depot processed transactions without any meaningful intervention, despite evident warning signs such as first-time users making large cash deposits while engaged in phone calls with unknown individuals. The suit also criticizes the company’s fee structure, which can be as high as 50% per transaction, and argues that the on-screen warning stickers meant to protect users are ineffective.
Following the incident, the Laceys’ son filed a federal crime complaint, which prompted Bitcoin Depot to issue two refund checks of $1,000. However, the lawsuit states this amount fell grossly short of covering the fees accrued by the couple. Karen Lacey, who had retired before the fraud, has since re-entered the workforce, taking rotating shifts at a local hospital.
The complaint references Bitcoin Depot’s SEC filings, acknowledging that its services could be utilized for illegal activities like fraud and indicating that the company’s risk management practices may be inadequately designed to protect consumers. Supporting this claim, data from the Federal Trade Commission reveals a sharp rise in Bitcoin ATM fraud losses, nearly tenfold from 2020 to 2023, with a median victim loss hitting $10,000. By 2025, the FBI reported losses reaching $333 million from Bitcoin ATM fraud, impacting over 10,000 victims in a single year.
The suit emerges as Bitcoin Depot is in the throes of financial distress, having filed for voluntary Chapter 11 bankruptcy on May 18, 2026, alongside the cessation of its entire network of over 9,000 ATMs across North America. In a significant turn of events, the company had previously disclosed losing $3.6 million in Bitcoin theft from its own wallets in March 2026, coupled with a worrying 49.2% revenue decline in the first quarter of 2026.
In light of their experiences, the Laceys are seeking a jury trial, injunctive relief, compensatory and punitive damages, restitution for the fees paid, and coverage of attorney’s fees, as they strive to hold Bitcoin Depot accountable for its actions.
