Key Takeaways:
Crypto investigator ZachXBT has accused Bitcoin ATM operator Bitcoin Depot of charging a 44 percent premium in a transaction involving an elderly fraud victim, who converted $25,000 in cash to Bitcoin.
"I strongly advise no one to ever give Bitcoin Depot ATMs your business," ZachXBT said in a post on X, questioning why a 74-year-old was allowed to make the transaction at a rate so far above market value.
According to the analyst, the victim was charged an effective price of $108,000 per Bitcoin while the market rate was approximately $75,000. The $25,000 transaction resulted in the victim receiving just 0.232 BTC, worth about $17,500 at the time. ZachXBT also revealed the company had allegedly been exploited for $3.26 million, or 54 BTC, in a separate incident that he claimed went unnoticed for several days.
The allegations amplify concerns about the security and fairness of the crypto ATM industry, which is facing increased regulatory scrutiny. ZachXBT suggested such transactions are often linked to social engineering scams where organized call centers pressure vulnerable individuals. This adds to Bitcoin Depot's existing legal and financial woes, including declining revenues and a lawsuit alleging scammers used its machines to defraud residents.
The controversy surrounding Bitcoin Depot comes as regulatory pressure mounts. In Haverhill, Massachusetts, authorities have ordered the removal of all 415 crypto ATMs within 60 days, citing a lack of regulation and the potential for scams. Operators face fines of $300 per day for non-compliance.
The company has also experienced leadership changes, with Scott Buchanan stepping down as CEO amid falling revenues since late 2025. Despite the negative attention, Bitcoin Depot's stock has seen a 105% increase over the past month, trading at $6.42.
This article is for informational purposes only and does not constitute investment advice.
