Nasdaq-listed bitcoin ATM operator Bitcoin Depot (BTM) announced Monday that it has filed for a Chapter 11 bankruptcy in the Southern District of Texas to close down operations.
In a press release, Bitcoin Depot said that the changing regulatory environment has made it difficult for the company to continue pursuing business.
"The regulatory environment for BTM operators has shifted significantly: states have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations; and operators have faced increasing litigation and regulatory enforcement," said CEO Alex Holmes.
Holmes explained that these developments have impacted the company's business and financial position, and made its current business model unsustainable.
The Chapter 11 will be a court-supervised process for an orderly wind-down of Bitcoin Depot's operations and the sale of its assets. In line with the process, the company's network of bitcoin ATMs has been taken offline, the press release said.
