Bitcoin Depot, once North America's largest Bitcoin ATM operator, has filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas. The filing on May 18 led to the shutdown of its network of approximately 9,700 machines. The company reported a 49.2% drop in revenue year-over-year for Q1 2026, with gross profit plummeting 85.5%. CEO Alex Holmes cited an "unsustainable" business model as a key factor in the company's financial decline. The bankruptcy filing comes amid increasing regulatory scrutiny on Bitcoin ATMs, which have been criticized as channels for fraud and money laundering. Canadian authorities have proposed a complete ban on crypto ATMs, while several US states have enacted laws restricting their operation. The American Bankers Association noted that 20 states had introduced new regulations as of April 2026. Legal challenges have also mounted, with Bitcoin Depot facing lawsuits and settlements over alleged scam-related transactions.