Washington state financial regulators take action against bitcoin kiosk operator

The Washington State Department of Financial Institutions (DFI) issued a Statement of Charges against Bitcoin Depot Operating, LLC, according to a DFI press release.

According to the DFI’s Statement of Charges, the company charged crypto kiosk customers up to 42% more than market price and profited from consumer fraud. A DFI investigation showed the majority of Washington consumers who lost money using the automated teller machines were over 60 years old.

The DFI alleges that Bitcoin Depot Operating, LLC of Atlanta, Georgia:

• did not follow Anti-Money Laundering and Bank Secrecy Act laws
• did not monitor for suspicious activity and fraud
• did not follow internal Know Your Customer policies or verify customer identities
• did not protect consumers against bad actors and failed to conduct due diligence until a customer deposited more than $100,000 in cash into a kiosk
• did not record all customer information required by law
• did not follow legal requirements for its BDCheckout product
• did not provide Washington customers required disclosures about fees in more than 30,000 transactions

Based on the alleged violations of the Uniform Money Services Act, the DFI seeks to revoke the license of Bitcoin Depot Operating, LLC, prohibit the company and its responsible individual from the industry, and order the responsible individual to pay a fine of $1,500,000. Both parties have a right to request a hearing to contest the charges.

In May of 2026, the company filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas. Washington consumers with claims may file a claim in the bankruptcy case and submit complaints via the DFI online complaint form.