State officials urged residents deceived through the crypto-kiosk operator’s machines to check eligibility as regulators intensify scrutiny of crypto ATM fraud across the United States.
Alaskans who lost money through Bitcoin Depot Operating LLC kiosks have until July 21, 2026, to seek a share of the company’s bankruptcy estate, after the Alaska Department of Law highlighted the court deadline. The company, which ran cash-to-crypto kiosks nationwide and in Alaska, filed for bankruptcy in the Southern District of Texas U.S. Bankruptcy Court. State officials said the machines were used in scams in which victims were pressured into depositing cash that was then converted into cryptocurrency and sent to wallet addresses controlled by fraudsters. The Department of Law said scammers posed as police, government agencies and well-known businesses, and warned that real agencies do not demand payment through crypto kiosks. Once the transfer cleared, reversing it was nearly impossible. The state said the impact in Alaska has been heavy. The FBI’s Internet Crime Complaint Center received fraud reports from more than 3,200 Alaskans last year, and Wasilla State Senator Cathy Tilton said total losses were about $40 million, with seniors making up a large share of victims. Cori Mills, acting attorney general, called cryptocurrency “an emerging financial tool” but said Bitcoin Depot’s kiosks had been “used to take advantage of vulnerable Alaskans.” The bankruptcy notice is also feeding a broader policy push. Tilton is sponsoring SB 249, which would require licensing, identity verification and other protections for crypto-kiosk operators in Alaska. The development comes as regulators and courts across the United States step up action against crypto ATMs, with Indiana, Tennessee and Minnesota banning them outright. A federal judge on July 7 allowed Tennessee to keep enforcing its ban while CoinFlip challenges the law. Bitcoin Depot operated more than 9,000 kiosks across North America and filed for Chapter 11 in May. Cryptopolitan reported that the company’s first-quarter 2026 revenue fell nearly 50% from a year earlier. Interested residents can follow the claims process through the court-appointed restructuring administrator on the Bitcoin Depot bankruptcy claims website, while the Department of Law cautioned victims not to share personal or financial information with anyone offering help unless that person’s identity has been independently verified.