ZachXBT Calls Out Bitcoin Depot ATM Over Alleged Fraud Case

Crypto detective ZachXBT has called out Bitcoin Depot, and has urged users to avoid its Bitcoin ATMs after bringing up a recent fraud case involving an elderly victim in the US.

In a post on X, ZachXBT described a transaction where a 74-year-old individual converted $25,000 in cash into Bitcoin through a Bitcoin Depot ATM. 

ZachXBT Lashes Out at Bitcoin Depot ATMs 

According to his analysis, the user was charged an effective price of $108,000 per Bitcoin, while the market rate at the time was close to $75,000. Consequently, the victim received only 0.232 BTC, valued at roughly $17,500. This left a gap of about $7,500, which ZachXBT called out.

He further alleged that the transaction was linked to an overall scam pattern. He claimed that organized call centers, particularly those targeting elderly individuals, often use social engineering tactics to pressure victims into making such transactions. In this case, he said the victim was guided into using the ATM as part of the fraud process. He also suggested that a notable share of activity on such machines could be linked to scams, i.e., it could fall between 10% and 25%.

ZachXBT brought up another incident. He claimed that Bitcoin Depot had previously been exploited for $3.26 million, i.e., 54 BTC, and that the issue went unnoticed for several days. 

I strongly advise no one to ever give Bitcoin Depot ATMs your business.

-Why was an elderly fraud victim recently allowed to convert $25K fiat to BTC via Bitcoin Depot ATM in the US?

-Why was the victim quoted at $108K per BTC when market price is $75K?

That’s $25K total cost… pic.twitter.com/tnTaev7bm2

— ZachXBT (@zachxbt) April 22, 2026

He disclosed a wallet address associated with the alleged theft and contributed to concerns about monitoring and response mechanisms in the system. Online, the exchange received mixed reactions. Some users said Bitcoin ATMs usually display fees and rates before transactions occur, as that information is left to the user to review. ZachXBT pointed out that the victim was vulnerable. He said the transaction happened recently and involved a senior citizen who had been manipulated into proceeding with the purchase. Being one of the largest operators of crypto ATMs, Bitcoin Depot is already caught up in ongoing debates about regulation and consumer protection.

 Its wide network and high transaction volume have made it more exposed to misuse.

Financial challenges have also added to scrutiny. Since late 2025, the company has reported declining revenues. Leadership changes followed, with Scott Buchanan stepping down and Alex Holmes taking over. Legal issues have further complicated the situation. In early 2026, Andrea Joy Campbell filed a lawsuit, alleging that scammers used the company’s machines to defraud residents.

At the same time, regulatory pressure is increasing at the local level. In Haverhill, authorities have moved to remove crypto ATMs entirely. 

More than 415 machines in the city are under a stringent 60-day removal order. Mayor Melinda E. Barrett introduced the proposal and it has strong backing from local officials. Authorities also say that Bitcoin ATMs tend to work with minimal regulation. It also creates opportunities for scammers, especially in cases involving high-pressure tactics. All machines are required by the ordinance to be shut down or removed within two months. Operators who don’t comply face fines of $300 per day for each machine. Officials emphasize the measure is important to protect residents, particularly those unfamiliar with cryptos.

Despite the controversy, Bitcoin Depot’s stock has shown short-term gains. It recently rose slightly to $6.42. Over the past month, it has recorded a much larger increase at 105%.