Bitcoin Depot, the operator of cryptocurrency ATMs, confirmed that it suffered a cyberattack on March 23. The attackers took control of the company’s Bitcoin wallet-related accounts, resulting in a loss of approximately 50.9 Bitcoins, worth around $3.7 million.

In documents submitted to the U.S. Securities and Exchange Commission, the company emphasized that this security incident did not affect customer accounts, platform data, or personal privacy, and that its daily operations were not significantly disrupted. Moreover, the company’s insurance coverage might cover some of the financial losses.

Although investigations are still ongoing to fully assess the nature and scope of the incident, the market reaction was surprisingly positive, indicating that investors have become somewhat desensitized to short-term negative news. According to Monitored by Woofun AI, on Wednesday, after the bad news was announced, Bitcoin Depot’s stock price actually rose instead of falling. It closed at $2.74, a one-day increase of 15.61%, and before the market opened, the price even rose further to $2.90, an increase of 5.84%.

Behind this unusual market performance lay the severe legal and regulatory challenges the company has faced in several states in the United States in recent years. Connecticut suspended its currency transfer license and issued a temporary ban because the company charged excessive fees and failed to refund the full amount to fraud victims. Massachusetts officially filed a lawsuit accusing it of assisting in fraud and overcharging, while Maine required the company to pay $1.9 million to compensate affected users.

It is worth noting that this hacker attack is not the first time the company has encountered a security issue. As early as June 2024, a data breach related to an external system led to the exposure of personal information of 26,732 customers. It was not until June 2025, when the investigation was completed, that authorities allowed the company to notify the customers.

As public concern about fraud continues to rise, states across the United States are accelerating the regulation of cryptocurrency ATMs. The cities of Stillwater in Minnesota and Spokane in Washington have already issued bans, classifying these devices as the preferred tools of scammers. The city of Haverhill in Massachusetts is also considering proposed regulations; if approved, they would force all such devices to be removed within 60 days, which would significantly impact the viability of this type of infrastructure.