Bitcoin Depot, North America's largest Bitcoin ATM operator, filed for Chapter 11 bankruptcy protection and shut down its entire network of over 9,000 machines.
“States have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations; and operators have faced increasing litigation and regulatory enforcement," Holmes said, noting that the crackdown has “materially affected Bitcoin Depot's business and financial position.”
The company exhausted other alternatives before seeking court protection, Holmes said, explaining that, "After evaluating all options, we determined to initiate this court-supervised process to facilitate an orderly wind-down of operations and a sale of the Company’s assets."
The U.S. Bankruptcy Court for the Southern District of Texas will oversee proceedings that include Bitcoin Depot's Canadian entities, with the company expecting to commence separate restructuring proceedings in Canada.
