Residents of Alaska who lost money to scams involving Bitcoin Depot cryptocurrency kiosks must submit their claims for compensation by July 21, 2026, according to the Alaska Department of Law. Bitcoin Depot Operating LLC, a company that operated cash-to-crypto kiosks across the United States, entered bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Texas.
Scams and losses in Alaska
The Alaska Department of Law’s Consumer Protection Unit urged anyone deceived by these kiosks to check their eligibility for restitution as the deadline approaches. Bitcoin Depot kiosks, which were designed to function similarly to ATMs, accepted cash and transferred cryptocurrency to the wallet address provided by the user. However, fraudsters manipulated this process to their advantage.
The department stated that scammers commonly pretended to be law enforcement officials, government representatives, or employees of well-known companies. They pressured unsuspecting victims into depositing cash into the machines, after which cryptocurrency was transferred to wallets controlled by the scammers. Once the transaction was complete, reversing the transfer was nearly impossible.
Senator Cathy Tilton from Wasilla reported that over 3,200 Alaskans filed fraud complaints with the FBI’s Internet Crime Complaint Center last year, and total losses were estimated at approximately $40 million. Seniors represented a large share of those affected.
Acting Attorney General Cori Mills remarked that cryptocurrency technology, though offering new opportunities to Alaskans, also brought significant risks. She emphasized that the kiosks were “used to take advantage of vulnerable Alaskans.”
Authorities stressed that legitimate agencies will not request payments through crypto kiosks and advised residents to independently verify such requests before sending money.
Regulatory response and legislative efforts
Senator Tilton is currently sponsoring SB 249, a proposed bill that would require crypto kiosk operators in Alaska to obtain licenses, conduct identity verification, and implement additional consumer protections. She referenced the Bitcoin Depot bankruptcy as further evidence of the need for tighter oversight.
Across the country, American regulators and courts have responded to the rise in crypto kiosk-related fraud. States such as Indiana, Tennessee, and Minnesota have implemented outright bans on the machines. On July 7, a federal judge permitted Tennessee to continue enforcing its ban, even as CoinFlip, a prominent crypto ATM operator, mounts a legal challenge.
The FBI reported that nationwide losses from crypto ATM scams reached $247 million in 2024. Older adults were identified as frequent victims.
Bitcoin Depot, which operated over 9,000 kiosks throughout North America, filed for Chapter 11 bankruptcy in May, following increasing pressure from regulators and lawsuits. In the first quarter of 2026, company revenue reportedly dropped by nearly 50% compared to the previous year.
| State | Regulatory Action | Losses in 2023-2024 |
|---|---|---|
| Alaska | No ban, proposed licensing (SB 249) | $40 million (2023) |
| Texas | No ban, enforcement, kiosks seized | $56.8 million (2023) |
| Tennessee | Complete ban, challenged in court | N/A (state data not disclosed) |
| United States (nationwide) | Multiple state bans, ongoing enforcement | $247 million (2024) |
In Massachusetts, the attorney general sued Bitcoin Depot in February. In Texas, local authorities confiscated company kiosks, and losses from crypto kiosk fraud reached $56.8 million last year—more than in any other state.
Eligible Alaskans interested in pursuing compensation can track updates or file claims via the official bankruptcy administrator’s online portal. The Department of Law recommends typing the website address directly into a browser instead of clicking on links in emails.
Filing a claim in the bankruptcy case is optional. Officials also warned victims not to give personal or financial details to anyone offering help unless that person’s identity can be independently verified.
Mini dictionary: Bitcoin Depot Operating LLC is a company that managed thousands of cash-to-crypto kiosks across North America, allowing users to purchase cryptocurrency using cash. The company filed for bankruptcy in 2024 amid increasing regulatory scrutiny and fraud-related lawsuits.
