Ohio residents who have utilized cryptocurrency ATM kiosks may need to be on alert following recent developments involving Bitcoin Depot Inc., a company that has filed for bankruptcy. In the past year, this company processed over 10,600 transactions through its machines located across at least 50 sites in the state.
The Ohio Department of Commerce’s Division of Financial Institutions has identified approximately 32 consumers who are collectively owed more than $90,000 in refunds. The agency is taking steps to raise awareness among other potential claimants, including individuals who may have fallen victim to scams while using Bitcoin Depot’s services.
In its bankruptcy filing in Texas, Bitcoin Depot cited that newly implemented regulations aimed at preventing scams adversely affected its operations. Additionally, several states have begun enacting bans on cryptocurrency ATMs, further complicating its business model. Notably, Ohio has yet to adopt similar stringent regulations.
Ingrid White from the Division of Financial Institutions pointed out that Ohio currently lacks daily transaction limits and fee restrictions for cryptocurrency transactions. However, she mentioned that a bill is pending in the state legislature that could address these regulatory concerns.
The Division has been licensing crypto ATM operators as money transmitters since 2002. Presently, about 13 such companies continue to operate across Ohio.
Consumers who believe they are owed money or have unresolved claims against Bitcoin Depot Inc. are encouraged to file claims through the ongoing bankruptcy proceedings. Before doing so, the Division of Financial Institutions advises gathering all pertinent documentation, including receipts and transaction records.
For further assistance, consumers can reach out to Bitcoin Depot’s restructuring hotline at 844-339-4117 or via email at bitcoindepotinfo@ra.kroll.com.
