The Alaska Department of Law is reminding residents who lost money through Bitcoin Depot kiosks that they have until July 21, 2026, to file a claim in the company’s bankruptcy case. The cash-to-crypto machines operated nationwide, including in Alaska, until Bitcoin Depot Operating LLC filed for Chapter 11 bankruptcy in the Southern District of Texas.
For a state the size of Alaska, the losses have been severe. The FBI’s Internet Crime Complaint Center logged reports from over 3,200 Alaskans last year. State Senator Cathy Tilton of Wasilla put the total at roughly $40 million. Seniors were hit especially hard.
The kiosks looked like bank ATMs but worked differently. A customer inserted cash, and the machine sent cryptocurrency to whatever wallet address was entered. Scammers took advantage of that setup. They posed as police, government agencies, or trusted companies, then pressured victims into feeding cash into the kiosks and routing the crypto to the scammers’ wallets. Once the transfer cleared, it was nearly impossible to reverse.
Acting attorney general speaks out
Cori Mills, acting attorney general, described the technology as a double-edged sword. “Cryptocurrency is an emerging financial tool that opens up possibilities for Alaskan consumers, but as with all advancements, there are perils too,” Mills said. She added that Bitcoin Depot’s kiosks were “used to take advantage of vulnerable Alaskans.”
The department has stressed repeatedly that real government agencies never ask for money through crypto kiosks. Residents should verify such a demand on their own before sending any money.
Senator pushes for new oversight
Tilton is sponsoring SB 249, a bill that would require licensing, identity verification, and other protections for crypto-kiosk operators in Alaska. She linked the bankruptcy notice to her call for tighter oversight.
Federal regulators and courts have already cracked down on crypto ATMs amid rising fraud. Indiana, Tennessee, and Minnesota banned them outright. A federal judge on July 7 allowed Tennessee to continue enforcing its ban while operator CoinFlip challenges the law, according to Cryptopolitan. That report cited FBI data showing nationwide losses from crypto-ATM scams hit $247 million in 2024, with older adults among the most common victims.
Bitcoin Depot under pressure
Bitcoin Depot is caught in the middle. The company operated more than 9,000 kiosks across North America and filed for Chapter 11 in May. Cryptopolitan reports that first-quarter 2026 revenue fell nearly 50% year over year. Massachusetts’s attorney general sued the company in February. Texas, where local sheriffs seized company kiosks, saw victims lose about $56.8 million to crypto-kiosk fraud last year—more than any other state.
Alaskans who think they qualify can track the process through the court-appointed restructuring administrator at the Bitcoin Depot bankruptcy claims website. The Department of Law advised anyone nervous about clicking an email link to type the address into a browser manually.
Filing a claim is not required. The department also warned victims not to give personal or financial information to anyone who offers help unless the victim has independently verified that person’s identity.
