Maine regulators have reached a $1.9 million settlement with cryptocurrency ATM operator Bitcoin Depot to compensate residents defrauded by crypto kiosk scams from 2022 through 2025. Victims were instructed to convert cash into cryptocurrency and send it to wallets controlled by fraudsters. Claims must be submitted through the Maine Bureau of Consumer Credit Protection by April 1, 2026, with refunds expected after review in May 2026. The amount of each refund depends on verified losses and the number of valid claims; the settlement also requires Bitcoin Depot to comply with Maine’s consumer protection laws and operate as a licensed money transmitter.
Bitcoin ATM scams are among the fastest-growing forms of fraud in the country, costing hundreds of millions of dollars to victims each year. The issue has had real consequences for Mainers, including Mike Drake, who was told by a caller posing as his bank’s fraud department to move money into cryptocurrency and withdraw cash for a Bangor bitcoin ATM. Drake was guided step by step to use the machine and ended up losing more than $20,000 over several hours.
Maine enacted the Money Transmission Modernization Act, including the unhosted wallets rule, to require verification of wallets receiving funds. Key provisions include daily transaction limits of $1,000, fee caps of $5 or 3% of the transaction, and licensing requirements for kiosk operators as money transmitters. The law also provides refunds for fraud victims: full refunds (including fees) for transactions within 90 days of a customer’s first kiosk use if the customer was induced by fraud and files a report within one year. Enforcement has prompted some operators to pull machines from Maine rather than comply, and officials warn consumers to stay vigilant against scams and verify requests with trusted sources, reporting suspected fraud to local law enforcement, the FBI’s IC3, Maine’s Bureau of Consumer Credit Protection, and the AARP Fraud Watch Network.
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