Bitcoin Depot Stock Plummets 56% as Connecticut Halts Operations

Connecticut Halts Operations Over $150,000 in Excess Fees

The Connecticut Banking Commissioner issued a temporary cease-and-desist order on March 9, summarily suspending Bitcoin Depot's money transmission license. Regulators alleged the company engaged in multiple violations, including charging fees above the state's 15% legal limit and failing to provide complete refunds to consumers who were victims of scams. The order detailed over 1,000 transactions where the company collected approximately $150,000 in excess fees from more than 500 customers.

Compounding its regulatory troubles, Bitcoin Depot disclosed in a separate SEC filing that it expects to report unremediated “material weaknesses” in its internal controls. The news followed the March 11 resignation of Chief Operating Officer Elizabeth Simer, for which the company provided no reason. The state's order seeks restitution, civil penalties, and could lead to a permanent revocation of the company's license.

BTM Stock Collapses 91% From Peak as Revenue Outlook Dims

Bitcoin Depot's stock (BTM) has been decimated by the mounting operational failures, with shares closing at $4.06. The price reflects a 56% decline year-to-date and a 91% collapse from its June 2025 high of $45.4. The sell-off intensified as the company's financial performance deteriorated and its forward-looking guidance soured.

For the fourth quarter of 2025, revenue fell to $116 million from $136.8 million a year earlier, swinging the company to a net loss of approximately $25 million. In response to the regulatory climate, Bitcoin Depot issued a stark warning for its future, projecting that core business revenue for 2026 will fall between 30% and 40%. The company attributed the grim forecast directly to the “dynamic regulatory environment and enhanced compliance standards.”

Regulatory Scrutiny Widens Across Multiple States

The action in Connecticut is not an isolated incident but part of a pattern of increasing regulatory pressure on Bitcoin Depot nationwide. In February, the company was sued by the Massachusetts Attorney General for allegedly facilitating crypto scams. That same month, Iowa's Attorney General accused the firm of failing to protect consumers from fraudulent ATM transactions.

This follows a January settlement in Maine, where Bitcoin Depot entered a $1.9 million consent agreement to compensate scam victims and adhere to state licensing rules. This series of enforcement actions across multiple states highlights a widening crackdown on the crypto ATM industry's compliance and consumer protection practices, posing a significant threat to Bitcoin Depot's business model and its ability to operate across the U.S.