Crypto Sleuth ZachXBT Exposes Bitcoin Depot ATM Scam

ZachXBT calls out Bitcoin Depot ATMs after an elderly fraud victim paid $25K for Bitcoin worth just $17.5K. Here’s what happened.

On-chain investigator ZachXBT recently called out Bitcoin Depot ATMs on X. The post came in direct response to a promotional tweet from Bitcoin Depot. 

The company had been encouraging users to buy Bitcoin through its 9,000+ ATMs. ZachXBT strongly advised the public against using the service. His reasons were backed by hard numbers.

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Bitcoin Depot ATM Charged Elderly Victim Way Above Market Price

At the center of ZachXBT’s post was a troubling transaction. 

An elderly fraud victim converted $25,000 in cash to Bitcoin through a Bitcoin Depot ATM in the United States. The machine quoted Bitcoin at $108,000 per coin. The market price at the time sat around $75,000.

The victim walked away with just 0.232 BTC. That amount was worth roughly $17,500 at the market rate. 

The victim had paid $25,000. ZachXBT pointed out that Bitcoin Depot pocketed a $7,500 difference through the steep markup. He publicly called on the company to return that amount.

ZachXBT Links Bitcoin Depot to Larger Security Breach

ZachXBT did not stop at the overcharge. He also disclosed that Bitcoin Depot suffered a significant security breach. 

According to his on-chain analysis and the company’s SEC filing, 54 BTC worth approximately $3.26 million, was stolen. The theft went undetected for several days.

He shared the suspected theft address directly in his post. The address, bc1qpk2fm3e5fyc4hk3xrvkawrsdtymffdp6xmgtda, was linked to ongoing suspicious activity. 

ZachXBT framed the breach as a notable failure in the company’s security operations.

Concerns Grow Over Bitcoin ATM Safety for Vulnerable Users

This case highlights a growing concern around Bitcoin ATMs targeting vulnerable groups. 

Elderly individuals are frequent targets of overseas fraud rings. These scams often direct victims to convert cash using Bitcoin machines. High ATM markups make these situations even more costly for victims.