Bitcoin ATM Operators Received Billions in Cryptocurrency from Major Exchanges
Several large cryptocurrency firms transferred more than $1.5 billion in bitcoin to operators of bitcoin ATMs between 2018 and 2025. The transfers continued after state and local officials raised concerns about scam activity linked to the machines. Bitcoin Depot, the largest operator, filed for bankruptcy last week.
koreaherald.comBitcoin ATMs convert cash into cryptocurrency at locations such as gas stations and convenience stores. Over the past several months, the Canadian government proposed a ban on the machines, and Tennessee, Minnesota, and Indiana enacted laws to prohibit them.
Bitcoin Depot, the largest operator, filed for bankruptcy on May 19, 2026, citing litigation and government actions. A police lieutenant removed one of the company's machines from a convenience store in Haverhill, Massachusetts, on April 6, 2026.
At the request of ICIJ, cryptocurrency investigators traced billions of dollars in bitcoin transfers from named exchanges to ATM operators. 1 billion worth of bitcoin to ATM companies in recent years, including $17 million to Athena Bitcoin after September 2025.
Gemini provided more than $500 million in bitcoin to Bitcoin Depot between May 2020 and March 2025. Cumberland DRW supplied bitcoin to Bitcoin Depot and CoinFlip. Bitstamp transferred at least $7 million to Crypto Dispensers between 2018 and 2024.
Alleged that some ATM operators handled large volumes of scam transactions. C. Attorney General Brian Schwalb stated that Athena Bitcoin machines were used primarily by scammers. Athena Bitcoin rejected the allegations. Kraken stated that its business relationships undergo rigorous onboarding, ongoing due diligence, and enhanced monitoring.
Cumberland and Gemini did not respond to requests for comment. Firas Isa, founder of Crypto Dispensers, told ICIJ that Bitstamp conducted rigorous audits. Isa is under federal indictment for money laundering and denies the charges. Jason Ghetian, a former FBI agent, said exchanges could stop supplying bitcoin to the machines but have not done so.
The companies have not broken the law by providing liquidity, according to the reporting.
Key Facts
Story Timeline
4 events- May 19, 2026
Bitcoin Depot filed for bankruptcy citing litigation and government action.
1 sourceICIJ - April 6, 2026
Police removed a Bitcoin Depot ATM from a Haverhill, Massachusetts store.
1 sourceICIJ - September 2025
D.C. authorities singled out Athena Bitcoin machines for scam concerns.
1 sourceICIJ - March 2025
Gemini completed more than $500 million in bitcoin transfers to Bitcoin Depot.
1 sourceICIJ
Potential Impact
- 01
Bitcoin Depot's bankruptcy may reduce the number of operational bitcoin ATMs.
- 02
Other states may consider legislation restricting bitcoin ATM operations.
- 03
Kraken's Federal Reserve master account could face additional compliance reviews.
Transparency Panel
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