Bitcoin Depot, a U.S. Bitcoin ATM operator, has filed for Chapter 11 bankruptcy and will gradually shut down its operations.

CoinFeed reported on May 18th that, according to The Block, Nasdaq-listed Bitcoin ATM operator Bitcoin Depot has filed for Chapter 11 bankruptcy in the Southern District of Texas to gradually shut down its operations. CEO Alex Holmes stated that changes in the regulatory environment have made the current business model unsustainable, with states implementing stricter compliance obligations, including new transaction limits, and some jurisdictions even directly restricting or prohibiting Bitcoin ATM operations. In April, the company suffered a security breach that resulted in the theft of $3.7 million. Last week, the company stated that it was unable to deliver its first-quarter financial report on time due to a "significant flaw" in cash transport reconciliation. Preliminary unaudited data shows that first-quarter revenue decreased by 49.2% year-over-year, with a net loss of $9.5 million, compared to a net profit of $12.2 million in the same period last year.