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Nineteen Arkansas consumers are owed a combined $33,312 in refunds after Bitcoin Depot, one of the largest cryptocurrency kiosk operators in the U.S., filed for Chapter 11 bankruptcy and shut down its nationwide network, the Arkansas Securities Department said July 7.
The announcement, made on July 7 by the Arkansas Securities Department, affects customers who used Bitcoin Depot kiosks across the state and may still be owed funds.
According to the regulator, Bitcoin Depot bankruptcy proceedings are now underway in the U.S. Bankruptcy Court for the Southern District of Texas following the company’s filing. The operator, which previously maintained cryptocurrency kiosks in 33 U.S. states, including Arkansas, has ceased operating its kiosk network, leaving some customers with outstanding claims.
Arkansas officials said at least 19 consumers are currently owed refunds totaling $33,312, while additional users who believe they suffered financial losses involving the kiosks are encouraged to file claims through the bankruptcy process.
The Bitcoin Depot bankruptcy has raised concerns for thousands of cryptocurrency users who relied on the company’s kiosks to purchase digital assets using cash or debit cards.
Unlike conventional automated teller machines, Bitcoin Depot kiosks transferred cryptocurrency directly to a customer’s digital wallet rather than dispensing cash or connecting to a bank account.
According to the Arkansas Securities Department, the company processed at least 2,341 individual transactions through a minimum of 92 kiosks across Arkansas over the past year.
State officials said the bankruptcy filing has left several customers with unresolved balances, prompting regulators to notify consumers about available compensation options.
“There are 19 consumers who are owed a total of $33,312 in refunds, ranging from $382 to $7,500,” the Arkansas Securities Department said in its official announcement.
Affected individuals will be contacted directly, although regulators stressed that any Arkansas resident who believes they may have a valid claim should also participate in the bankruptcy proceedings.
The Bitcoin Depot bankruptcy comes just over a year after Arkansas introduced tighter oversight for cryptocurrency kiosks through Act 557 of 2025, legislation aimed at reducing scams involving crypto ATM operators.
State Securities Commissioner Susannah T. Marshall said the law has already strengthened consumer protections while emphasizing that public awareness remains essential.
“Last year, the Arkansas General Assembly passed Act 557 of 2025, which placed necessary restrictions on cryptocurrency kiosks in Arkansas,” — Susannah T. Marshall, Securities Commissioner, Arkansas Securities Department.
Marshall added that the new framework has helped curb fraudulent activity linked to cryptocurrency kiosks.
“These protections, overseen by the Securities Department, have successfully led to better protections of Arkansans from bad actors attempting to use this product to scam Arkansans,” — Susannah T. Marshall, Securities Commissioner, Arkansas Securities Department.
She also encouraged residents to educate themselves about cryptocurrency fraud and report suspicious activity.
“The Securities Department will continue its work on protecting consumers and we encourage Arkansans to call the Department with any questions they may have,” — Susannah T. Marshall, Securities Commissioner, Arkansas Securities Department.
As the Bitcoin Depot bankruptcy process moves forward, regulators are urging customers to take action if they believe they are owed money.
Arkansas consumers with claims related to the Bitcoin Depot bankruptcy can submit proof of claim through the court-supervised bankruptcy proceedings. Individuals seeking assistance may also contact the restructuring hotline managed for the bankruptcy estate or reach out to the Arkansas Securities Department for guidance.
Officials noted that the Bitcoin Depot bankruptcy does not automatically compensate affected users, making it important for eligible consumers to file claims before applicable deadlines established by the bankruptcy court.
The Arkansas Securities Department said it will continue monitoring the Bitcoin Depot bankruptcy while maintaining oversight of cryptocurrency-related financial services operating within the state.
The regulator reiterated that consumer protection remains a priority as digital asset services continue evolving and encouraged anyone who believes they were affected by the Bitcoin Depot bankruptcy to review their transaction history and pursue available legal remedies.
Primary sources: Arkansas Securities Department press release
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