Connecticut Suspends Bitcoin Depot License Over Violations

Connecticut banking regulators suspended the money transmission license of Bitcoin Depot, one of the largest cryptocurrency ATM operators in the United States, on March 9, forcing the company to immediately halt its kiosk operations across the state. The action stems from an investigation that uncovered multiple violations of the state's Money Transmission Act, including excessive transaction fees, incomplete refunds to scam victims and failure to maintain required financial standards.

The Connecticut Department of Banking, through its Consumer Credit Division, issued a temporary cease-and-desist order citing public safety concerns. Regulators found more than 1,000 instances where Bitcoin Depot charged fees exceeding the state's 15 percent cap on money transmission services, resulting in approximately $150,000 in excess charges to over 500 customers. Officials also alleged that the company did not fully refund individuals who lost money to scams facilitated through its machines, along with deficiencies in customer identity verification, anti-money laundering controls and required disclosures. The order requires Bitcoin Depot to provide a list of affected customers, submit a...