Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against Bitcoin Depot Inc. and Bitcoin Depot Operating LLC, alleging the company used deceptive sales tactics and knowingly facilitated cryptocurrency scams that cost Massachusetts consumers millions of dollars.
The complaint claims Bitcoin Depot overcharged customers, failed to implement safeguards against fraud, refused to refund scam victims, and misled investors about the extent of scam activity at its kiosks. The Attorney General is seeking a court order to require the company to adopt additional anti-fraud measures for large transactions and to refund affected customers.
“Massachusetts consumers deserve to feel safe when they handle their hard-earned money, no matter the technology involved. With this lawsuit, we’re alleging that instead of handling consumers’ money in good faith, Bitcoin Depot used misleading sales tactics to overcharge its customers and knowingly facilitated crypto scams that robbed Massachusetts consumers of more than $10 million dollars – all while removing safeguards against fraud and misleading investors in order to line their own pockets,” said AG Campbell. “I will continue to stand up for consumers and hold accountable anyone who enables fraud within our state.”
Bitcoin Depot operates more than 8,000 cryptocurrency kiosks nationwide, including hundreds in Massachusetts. These kiosks are often found in convenience stores or gas stations and allow users to purchase Bitcoin.
According to the Attorney General’s Office (AGO), internal warnings from employees indicated that nearly all large transactions at these kiosks were linked to scams. Between August 2023 and January 2025, over 80% of customers spending $10,000 or more at Massachusetts-based Bitcoin Depot kiosks did so as part of scam transactions. Nearly 60% of the company’s revenue from Massachusetts during this period reportedly came from such activity.
Despite being aware of significant scam-related activity, the AGO alleges that Bitcoin Depot removed certain anti-fraud protections by not questioning customers making large purchases—steps that could have detected fraudulent schemes. When notified by customers about being scammed, the company frequently declined refunds or only partially returned fees collected through markups as high as 30%.
The lawsuit also states that Bitcoin Depot misrepresented the total cost of purchasing cryptocurrency by displaying lower prices initially but adding hidden fees throughout the transaction process. Markups on kiosk transactions ranged from 15% to 50%, sometimes resulting in thousands of dollars in extra charges for larger purchases.
Additionally, it is alleged that while Bitcoin Depot disclosed some risk of scams to investors, it failed to reveal that scam-related transactions represented a major source of revenue. In 2021, employees estimated that up to 90% of their largest clients were victims of scams.
The case is being managed by Assistant Attorney General Mike Sugar, Advocate Attorney Caroline Lundy, Paralegal Kellin Cykes from AG Campbell’s Insurance and Financial Services Division, along with Senior Investigator Edward Cherubin and Investigator Benjamin Potter from AG Campbell’s Civil Investigations Division.
Consumers who believe they have been subject to unfair or deceptive practices related to investments or securities can file complaints with the Attorney General’s office.
