Bitcoin Depot bankruptcy gives Alaska residents scammed through the company’s crypto kiosks until July 21, 2026, to file claims.
Alaska’s Department of Law alerted victims after Bitcoin Depot Operating LLC sought bankruptcy protection in the Southern District of Texas.
The company operated cash-to-crypto kiosks across Alaska and nationwide. Alaska’s Consumer Protection Unit urged residents to review eligibility and submit claims before the deadline.
More than 3,200 Alaskans reported about $40 million in fraud losses to the FBI’s Internet Crime Complaint Center last year, according to Wasilla State Senator Cathy Tilton. Seniors represented a large share.
How Crypto Kiosk Scams Targeted Victims
Bitcoin Depot’s machines resembled bank ATMs, but they converted cash into cryptocurrency and sent it to a wallet address entered during the transaction. Scammers exploited that process by directing victims to wallets they controlled.
According to the Department of Law, fraudsters often posed as police officers, government agencies, or major businesses. They pressured victims to deposit cash into kiosks and transfer cryptocurrency, leaving little chance of reversing payment.
Cori Mills, Alaska’s acting attorney general, called the technology a double-edged sword. “Cryptocurrency is an emerging financial tool that opens up possibilities for Alaskan consumers, but as with all advancements, there are perils too,” Mills said. She also described the kiosks as machines “used to take advantage of vulnerable Alaskans.”
The department warned that legitimate government agencies do not demand payment through cryptocurrency kiosks. Residents should verify any payment request before sending money.
Alaska Lawmakers Seek Stronger Kiosk Rules
Tilton is sponsoring SB 249, which would require licensing, identity verification, and safeguards for crypto-kiosk operators in Alaska. She linked the bankruptcy notice to her push for stricter oversight.
Regulators and courts elsewhere have acted against crypto ATMs amid rising fraud. Indiana, Tennessee, and Minnesota have banned the machines.
On July 7, a federal judge allowed Tennessee to keep enforcing its ban while CoinFlip challenges the law. FBI complaint data showed nationwide crypto-ATM scam losses reached $247 million in 2024, with older adults among the most common victims.
Bankruptcy Filing Offers Recovery Path
Bitcoin Depot operated more than 9,000 kiosks across North America before filing for Chapter 11 in May. Its first-quarter 2026 revenue fell nearly 50% year over year.
Massachusetts’s attorney general sued the company in February. In Texas, local sheriffs seized company kiosks, while victims lost about $56.8 million to crypto-kiosk fraud last year, the highest total.
Eligible Alaskans may follow the case through the court-appointed restructuring administrator’s claims website. The Department of Law advised residents to type the address into a browser if they distrust email links.
Filing is optional. Victims should not share personal or financial information with anyone offering assistance unless they independently verify that person’s identity.
