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nid 91343
Mar 09, 2026
ataylor@vixio.com
Connecticut
Connecticut Department of Banking - Administrative Orders and Settlements
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2047 charsConnecticut Banking Commissioner Summarily Suspends Bitcoin Depot's Money Transmission License
On March 9, 2026, Connecticut's Banking Commissioner Jorge L. Perez issued an order summarily suspending Bitcoin Depot Operating LLC d/b/a Bitcoin Depot (formerly LUX Vending LLC), a virtual currency kiosk operator, from engaging in money transmission activities in Connecticut. The suspension is effective immediately upon receipt of the order.
The Commissioner found that Bitcoin Depot violated multiple provisions of the Connecticut General Statutes and federal anti-money laundering regulations. Key violations include: failing to maintain the required minimum tangible net worth of $1,000,000 in 2022 and 2023; charging excessive fees exceeding the statutory 15 percent limit on virtual currency transactions, collecting $150,426.27 in excess fees from 1,015 transactions; failing to provide full refunds to defrauded customers as required by law; failing to obtain government-issued identification from 19 customers; allowing customers to exceed daily transaction limits; and failing to implement adequate anti-money laundering and know-your-customer controls. The Commissioner documented seven Connecticut consumers who lost a combined $112,120 to scams facilitated through Bitcoin Depot's kiosks, with the company refusing refunds despite meeting statutory requirements. The company also faced enforcement actions from Iowa, Maine, Florida, and Minnesota authorities, including a $1,900,000 settlement with Maine related to consumer harm.
Bitcoin Depot must immediately cease accepting funds from Connecticut customers and disable all kiosks. Within seven days, it must segregate all customer funds in trust accounts and provide detailed reports of holdings. The Commissioner has issued an order requiring restitution to defrauded consumers and disgorgement of fees obtained through unsafe practices. Bitcoin Depot may request a hearing within 14 days. If no hearing is requested or the company fails to appear, the Commissioner will issue a permanent license revocation order and may impose civil penalties up to $100,000 per violation.
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1736 charsConnecticut Department of Banking Suspends Bitcoin Depot's License for AML and Consumer Protection Violations
On March 9, 2026, the Connecticut Department of Banking (DOB) issued an order summarily suspending Bitcoin Depot Operating LLC, a virtual currency kiosk operator, from engaging in money transmission activities in Connecticut. The suspension is effective immediately upon receipt of the order. The Commissioner found that Bitcoin Depot violated multiple provisions of the Connecticut General Statutes and federal anti-money laundering regulations.
Key violations include:
failing to maintain the required minimum tangible net worth of $1,000,000 in 2022 and 2023;
charging excessive fees exceeding the statutory 15 percent limit on virtual currency transactions, collecting $150,426.27 in excess fees from 1,015 transactions;
failing to provide full refunds to defrauded customers as required by law; failing to obtain government-issued identification from 19 customers;
failing to provide terms and conditions to Connecticut consumers prior to each virtual currency transaction;
allowing customers to exceed daily transaction limits; and
failing to implement adequate anti-money laundering and know-your-customer (KYC) controls.
The DOB also documented several Connecticut consumers who lost money to scams facilitated through Bitcoin Depot's kiosks, with the company refusing refunds despite meeting statutory requirements.
Under the terms of the order, Bitcoin Depot must immediately cease and desist accepting funds from Connecticut customers and disable all kiosks. Within seven days, it must segregate all customer funds in trust accounts and provide detailed reports of holdings. The Commissioner has issued an order requiring restitution to defrauded consumers and disgorgement of fees obtained through unsafe practices.