The recent bankruptcy of a major crypto company could translate into payments for select Americans. Bitcoin Depot (Nasdaq: BTM) was a popular crypto kiosk operator company. These kiosks let c
The recent bankruptcy of a major crypto company could translate into payments for select Americans.
Bitcoin Depot (Nasdaq: BTM) was a popular crypto kiosk operator company. These kiosks let customers buy cryptocurrency with cash or credit card at retail locations.
Related: Crypto firm files for Chapter 11 bankruptcy after founder's arrest
While the company operated more than 9,000 Bitcoin kiosks throughout the United States, Canada, and Australia as late as September last year, it was facing a very difficult time due to targeted regulatory actions.
In May 2026, Bitcoin Depot was forced to file for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.
CEO Alex Holmes blamed the strict regulatory regime, including restrictions and bans in some jurisdictions on Bitcoin kiosk operations, for making the current business model "unsustainable."
The company also stated that its entire kiosk network had already been taken offline.
Trending on TheStreet Roundtable:Now, it turns out select residents living in the U.S. state of Arkansas are eligible for payments following Bitcoin Depot's bankruptcy.
The Arkansas Securities Department (ASD) announced on July 7 that it is sending alerts to Arkansas consumers who have used the company's services that they may be eligible to seek compensation for outstanding funds.
As per the ASD, Bitcoin Depot processed at least 2,341 individual transactions in Arkansas across at least 92 machines, and there are 19 customers in the state who are eligible for compensation.
"There are 19 consumers who are owed a total of $33,312 in refunds, ranging from $382 to $7,500."
The department said it will directly contact these individuals and also asked any Arkansan who believes they may have been impacted by a "scam involving these machines" to file a claim.
Eligible Arkansas consumers can file a claim against Bitcoin Depot in the bankruptcy case and even get in touch with the department over call or email, ASD said.
Related: Analyst compares Saylor's Strategy to bankrupt crypto company
