Bitcoin (BTC) ATM operator Bitcoin Depot has reported a security incident that resulted in roughly $3.7 million being stolen from its crypto wallets, as the company faces ongoing operational challenges.

The Nasdaq-listed company disclosed Wednesday that it detected unauthorized access to its IT systems on March 23, with the attacker obtaining control of credentials tied to the firm's crypto settlement accounts, according to its SEC filing.

As a result, the attacker transferred out 50.9 BTC, worth about $3.66 million, from Bitcoin Depot's company-controlled wallets.

"Upon detection, the Company promptly activated its incident response protocols, engaged external cybersecurity experts, and notified law enforcement," the company said in the filing.

Bitcoin Depot noted that the attack did not affect its customer platforms or data, though a third-party investigation remains ongoing. The company added that its insurance may cover certain losses associated with the incident, "but there can be no assurance that such coverage will be sufficient to recover any or all losses."

The Block has reached out to Bitcoin Depot for further information.

Operational challenges

The security breach came as Bitcoin Depot continues to face heightened regulatory scrutiny and operational challenges. Last month, Connecticut regulators suspended the company's money transmission license, alleging that the company charged fees above the state's 15% cap on 1,015 transactions. Regulators said this resulted in about $150,426 in excess fees paid by 510 customers.

Also last month, the company underwent a leadership reshuffle, appointing Alex Holmes as chairman and CEO. Holmes previously served as chairman and CEO of MoneyGram International from 2016 to 2024, overseeing the company's $2 billion sale to Madison Dearborn Partners, according to a March filing.

Meanwhile, Bitcoin Depot reported a net income of $4.7 million in 2025, compared to a $7.8 million net income in 2024, according to its latest earnings report. The company expects its revenue for its core business to decline by 30% to 40% in 2026, citing the impact of state regulations and heightened compliance standards as main drivers.

"While our fraud mitigation efforts have been effective in mitigating consumer fraud and protecting our customers, we do expect that these efforts will result in the Company recording materially lower levels of revenue than we have seen in prior years," the company said.

Shares of Bitcoin Depot closed up 15.6% at $2.74 on Wednesday, though the stock remains down 88% over the past six months, according to Yahoo Finance data.