Coinhub Bitcoin ATM — Fraud Facilitation Network
Auto-generated score, not yet verified against the scoring model. Under review — treat as indicative, not a verdict.
Summary
Coinhub, operated by Nevada-based LSGT Services LLC, is one of the largest remaining Bitcoin ATM operators in the United States with approximately 2,000 machines following Bitcoin Depot's May 2026 bankruptcy. The company has faced confirmed regulatory enforcement actions in California and Connecticut, has been named in U.S. Senate correspondence over its role in facilitating elder fraud, and has been identified by the ICIJ as a major recipient of bitcoin liquidity from Kraken despite ongoing scam-related losses at its machines. Coinhub has not been charged with fraud or any crime; all regulatory findings to date relate to consumer-protection violations including excessive fees and missing disclosures.
Connected Entities
1 entities · 10 linked investigations- + 3 more
Timeline(14 events)
1 January 2022
Coinhub begins operating virtual currency kiosks in Connecticut, later found to be in violation of state money transmission regulations.
Connecticut Department of Banking Consent Order (2023)1 April 2023
Merrimac, Massachusetts woman deposits $21,790 at a Coinhub machine after scammers impersonating Apple and bank support convinced her cryptocurrency would protect her funds. Police later recover the cash; the woman later settles confidentially with Coinhub.
Boston Globe (July 2026)3 October 2023
Connecticut Department of Banking issues consent order against LSGT Services LLC dba Coinhub. Coinhub had voluntarily ceased Connecticut operations on June 8, 2023.
Connecticut Department of Banking public records1 July 2024
A Massachusetts woman undergoing cancer treatment deposits $5,500 into a Coinhub machine after scammers impersonating law enforcement instruct her to do so. Coinhub charges a 20.5% fee on the transaction. Police recover the funds before scammers access them.
Boston Globe (July 2026)11 September 2024
Senator Dick Durbin and six Senate Democrats send letters to the ten largest Bitcoin ATM operators, including Coinhub, demanding action on elder fraud. Letter cites a Coinhub machine in Springfield, Illinois repeatedly used by elderly fraud victims.
U.S. Senate Judiciary Committee25 February 2025
Senator Durbin introduces the Crypto ATM Fraud Prevention Act (S.710), which would impose federal transaction limits, disclosure requirements, and anti-fraud obligations on operators including Coinhub.
Congress.gov1 March 2025
Haverhill, Massachusetts city council votes 10-0 to ban crypto kiosks within city limits, fining host businesses $300 per day for violations, following documented losses of approximately $500,000 linked to seven Coinhub machines in the city.
Boston Globe (July 2026)31 October 2025
California DFPI fines Coinhub (LSGT Services LLC) $675,000 for four categories of consumer-protection violations under the Digital Financial Assets Law, including excess fees, transaction limit violations, incomplete receipts, and missing disclosures. $105,000 in restitution ordered for affected consumers.
Decrypt / DFPI consent order7 January 2026
Coinhub opens in-person exchange branches in Las Vegas, Nevada, and Phoenix, Arizona, expanding beyond ATM kiosks into teller-service retail crypto locations.
CoinGape press release9 March 2026
Indiana signs into law a bipartisan bill banning crypto ATM kiosks statewide, becoming the first U.S. state to do so.
The Block1 May 2026
Bitcoin Depot, formerly the largest U.S. crypto ATM operator with approximately 8,400 machines, files for Chapter 11 bankruptcy. Court filings attribute the revenue decline partly to anti-fraud ID verification measures that cut quarterly revenue in half.
Yahoo Finance1 July 2026
Tennessee statewide ban on crypto ATMs takes effect, making it the second state to ban the machines. The law extends criminal liability to host businesses.
The Block1 July 2026
Boston Globe publishes a major investigation into Coinhub's operations in Massachusetts, documenting specific victim cases, estimated losses, and the company's public statements declining responsibility for fraud at its machines.
Boston Globe27 August 2026
CFTC issues consumer advisory warning about crypto ATM scams, citing $388 million in 2025 fraud losses with over 50% of victims aged 50 or older.
CryptoTimesDecision Log
- #1publish⛓ pending9/1/2026, 12:45:17 PMhash: BN4QYrUdzsuRsNKTeTqLgFaPGsm9JrcAGcaNMG8scjMW
14 of 15 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 9/1/2026, 12:45:04 PM
last updated: 9/1/2026, 3:37:56 PM
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