A retired Idaho couple lost $76,000 in retirement savings through Bitcoin Depot ATMs over five days in August 2025 — and now they're suing. Karen and Robert Lacey filed a federal class action on May 11 in U.S. District Court for the District of Idaho, alleging the ATM operator processed transactions despite clear red flags. Days later, on May 18, Bitcoin Depot itself filed for Chapter 11 bankruptcy and shut down its entire network of more than 9,000 ATMs across North America.
How the scam worked
The fraudsters posed as Norton customer service and later as FBI agents. They convinced the Laceys to deposit cash into Bitcoin Depot machines, and even caused wireless networks labeled 'FBI' to appear on the couple's phones — networks that remained visible months later. The lawsuit says Bitcoin Depot charged fees up to 50% per transaction and relied on on-screen warning stickers that are 'demonstrably ineffective.'
Why Bitcoin Depot is being sued
The plaintiffs argue Bitcoin Depot should have intervened when first-time users began making large cash deposits while on phone calls — classic fraud signals. The company's own SEC filings acknowledge its services 'may be exploited to facilitate illegal activity such as fraud' and that its risk management 'may not be sufficient.' After the couple's son filed a federal crime complaint, Bitcoin Depot issued two $1,000 refund checks — not even enough to cover the fees the company collected.
Human cost and industry context
Karen Lacey, now retired, had to return to work rotating hospital shifts to recover from the loss. The case reflects a broader crisis: FBI data shows Americans lost $333 million to Bitcoin ATM fraud in 2025, with over 10,000 victims in a single year. FTC figures document a nearly tenfold increase in such losses between 2020 and 2023, with a median victim loss of $10,000.
Bitcoin Depot's own troubles
The company's bankruptcy filing followed a string of bad news. In March 2026, Bitcoin Depot disclosed a $3.6 million Bitcoin theft from its own wallets. Its Q1 2026 revenue dropped 49.2% from the prior year. The class action seeks a jury trial, injunctive relief, and both compensatory and punitive damages, plus restitution of fees paid and attorney's fees.
What comes next
The Lacey lawsuit now proceeds against a company in Chapter 11. Whether Bitcoin Depot's bankruptcy will delay or halt the civil case remains an open question. The court has not yet set a hearing date.
