In a class-action lawsuit filed in Idaho, the operator of a now bankrupt crypto ATM is accused of profiting off fraud and leaving consumers vulnerable unprotected.
A retired Idaho couple has filed a federal class action lawsuit against Bitcoin Depot Inc., alleging the company’s ATM network served as a pipeline for scammers who drained their entire retirement savings — $76,000 — over five consecutive days in August 2025.
Karen Lacey and Robert Lacey are named as plaintiffs Lacey et al. v. Bitcoin Depot Inc., et al. (Case No. 1:26-cv-00288-DKG)Fraudsters impersonating FBI agents or Norton customer service reps convinced the victims their accounts were linked to investigations into child pornography, illegal gambling and other crimes.
Scammers are everywhere directed The couple must deposit money at Bitcoin Depot ATMs from August 9, 2025 to August 13, 2025. Fraudsters labelled wireless networks to further the scam. “FBI” to appear on the Laceys’ phones — signals that remained visible for months after the deposits.
Bitcoin Depot is accused of processing each transaction in the 43-page lawsuit filed on May 11, 2026 by the U.S. District Court for the District of Idaho. “without meaningful intervention” It is a clear sign that first time users are making big cash deposits when on the phone with unidentified parties.
The lawsuit further alleges the company charges fees of up to 50% per transaction and relies on on-screen warning stickers — a safeguard the plaintiffs call “demonstrably ineffective”.
After Karen and Robert’s son filed a federal crime complaint, Bitcoin Depot issued two $1,000 refund checks — an amount the lawsuit states did not cover even the fees the company collected. Karen Lacey was retired at the time of the fraud, but has now returned to work, working a rotating shift in a hospital.
Bitcoin Depot itself has stated in its SEC filings that it provides services. “may be exploited to facilitate illegal activity such as fraud” It is risk management “may not be sufficient”.
Federal Trade Commission data show Bitcoin ATM losses nearly doubled between 2020 and 2030, with an average victim loss of $10,000. By 2025, the FBI reported Americans lost $333 million to Bitcoin ATM fraud — more than 10,000 victims in a single year.
Bitcoin Depot bankruptcy filing
Bitcoin Depot is facing a lawsuit as a result of its corporate position collapses. The company filed for Chapter 11 voluntary bankruptcy on 18 May 2026 and closed down all of its more than 9,500 ATMs located in North America. In March 2026, the company reported that it had lost $3.6 million in Bitcoins from its wallets. It also revealed a revenue drop of 49.2% in Q1 2020.
Plaintiffs ask for a trial by jury, an injunction, punitive and compensatory damage, attorney’s fee reimbursement, and compensation of the fees they paid.
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Source: bitcoinmagazine.com
