Bitcoin Depot, once North America’s largest operator of cryptocurrency ATMs, files for Chapter 11 bankruptcy and begins winding down its business, according to the company and multiple reports. The company seeks bankruptcy protection and states it will sell assets as part of the process. The filings come amid tighter regulatory and legal scrutiny of crypto ATM operators and the broader market. Several outlets report that regulators are increasing oversight of cash-to-cryptocurrency kiosks as part of efforts to curb fraud and other illicit activity. Gizmodo and ICIJ both describe legal and regulatory pressure tied to allegations that crypto ATMs may be used to facilitate fraud, contributing to the company’s decision. Bloomberg characterizes the bankruptcy as another major setback for a niche segment that has been in decline for years. CoinDesk notes Bitcoin Depot is publicly listed on Nasdaq and is among the largest bitcoin ATM operators in the region. Across the sources, the common thread is that heightened compliance challenges and enforcement concerns are reducing the viability of the crypto ATM model, prompting Bitcoin Depot’s shutdown.