Bitcoin Depot has announced that it will now require customers to present personal identification for every transaction conducted at its ATMs. This decision follows a strategic enhancement of its compliance measures, initiated in October, as the company responds to increased scrutiny from state prosecutors, notably a recent lawsuit filed by the Massachusetts Attorney General.
The Atlanta-based company described this initiative as a “significant advancement” in its ongoing commitment to mitigate fraud and other illicit activities. The rollout of the ID verification process commenced earlier this month. By mandating personal IDs for each transaction, Bitcoin Depot aims to combat issues like account sharing, identity theft, and unauthorized account access.
CEO Scott Buchanan emphasized the importance of this step, stating, “Verifying identity at every transaction helps us catch patterns that might not show up during onboarding.” He reiterated Bitcoin Depot’s focus on fostering customer trust and security amidst rising concerns about the integrity of transactions at crypto ATMs.
With a network of approximately 8,800 ATMs across North America, Bitcoin Depot has faced financial challenges recently, with its stock price declining by 6.7% to $5.37, reflecting a steep drop of 80% in valuation over the past six months. Despite positioning itself as a facilitator for wider access to digital assets—allowing customers to purchase Bitcoin with cash—regulatory voices from states such as Massachusetts and Iowa have accused the firm of profiting from scams that primarily affect vulnerable populations, particularly the elderly.
In a stark report, the FBI revealed that $333 million was lost to fraud involving crypto ATMs in 2025. Additionally, a study by AARP indicated that 14 states enacted laws last year aimed at regulating crypto ATMs, with states like California and Texas imposing strict transaction caps. This regulatory environment reflects growing concerns over the targeting of seniors, who are often manipulated into making irreversible transactions by scammers posing as government representatives or tech support.
The lawsuit filed by Massachusetts Attorney General Andrea Campbell accuses Bitcoin Depot of facilitating crypto scams while neglecting to implement necessary safeguards against fraudulent activities. Previously, customers were required to provide only a phone number for small Bitcoin purchases before Bitcoin Depot updated its compliance standards. Campbell’s lawsuit seeks to impose stricter controls, including a prohibition on accepting transactions exceeding $10,000 without enhanced fraud prevention measures and a clearer refund process for victims.
This legal action draws parallels with a previous lawsuit from Iowa’s attorney general, although Massachusetts’s complaint seeks a more substantial intervention in Bitcoin Depot’s operations. Past rulings, including a decision by Iowa’s Supreme Court, allowed the company to retain cash deposited through scams, arguing that customers must confirm ownership of the wallet receiving the Bitcoin to complete transactions.
Despite its challenges, Bitcoin Depot has demonstrated a willingness to cooperate with law enforcement to help identify scammers. Nevertheless, some incidents, such as an event last year where Texas authorities resorted to forcibly accessing one of the firm’s ATMs, highlight the ongoing difficulties faced in navigating the burgeoning crypto ecosystem.
