A class action lawsuit filed in Idaho accuses the now-bankrupt cryptocurrency ATM operator of profiting from fraud while leaving vulnerable consumers unprotected.
A retired Idaho couple has filed a federal class-action lawsuit against Bitcoin Depot Inc., alleging that the company’s ATM network served as a pipeline for scammers who drained their entire retirement savings — $76,000 — over five straight days in August 2025.
Karen and Robert Lacey, named as plaintiffs Lacy et al. v. Bitcoin Depot Inc., et al. (Case No. 1:26-cv-00288-DKG)They say scammers posing as Norton customer service representatives and FBI agents convinced them their accounts were linked to child pornography and illegal gambling investigations.
Scammers wave The pair deposited cash at Bitcoin Depot ATMs between August 9 and 13, 2025. To further the deception, the scammers caused wireless networks labeled “FBI” to appear on the Lacey family’s phones — signals that remained visible for months after the deposits.
The 43-page complaint, filed on May 11, 2026, in the U.S. District Court for the District of Idaho, charges that Bitcoin Depot processed each transaction “without meaningful intervention” despite what it calls obvious warning signs: first-time users making large cash deposits while making phone calls to unknown parties.
The lawsuit also alleges that the company charges fees of up to 50% per transaction and relies on on-screen warning labels — a protection the plaintiffs call “demonstrably ineffective.”
After Karen and Robert’s son filed a federal crime complaint, Bitcoin Depot issued two refund checks for $1,000 — an amount the lawsuit states doesn’t even cover fees collected by the company. Karen Lacey, who retired when the fraud occurred, has since returned to the workforce, and now works rotating shifts at the hospital.
The complaint cites Bitcoin Depot’s SEC filings, which state that its services “may be exploited to facilitate illegal activity such as fraud” and that risk management “may be inadequate.”
Federal Trade Commission data displays Bitcoin ATM fraud losses increased nearly tenfold between 2020 and 2023, with the average loss per victim of $10,000. By 2025, the FBI reported that Americans had lost $333 million to Bitcoin ATM fraud — more than 10,000 victims in one year.
Bitcoin Depot Files for Bankruptcy
The lawsuit arrives as Bitcoin Depot’s position It collapses. The company filed for voluntary Chapter 11 bankruptcy on May 18, 2026, shutting down its entire network of more than 9,000 ATMs across North America. The company had previously revealed that $3.6 million worth of Bitcoin was stolen from its private wallets in March 2026, and reported a 49.2% decline in revenue in the first quarter of 2026.
The plaintiffs are seeking a jury trial, injunctive relief, punitive damages, recovery of fees paid, and attorneys’ fees.
