Web3 is Going Just Great

The company's bankruptcy filing reports between $10 million and $50 million in both assets and liabilities. In a recent financial disclosure, the company had reported a 49% year-over-year reduction in revenue and a net loss of $9.5 million for the year. The company had also suffered a $3.67 million hack in April.

Bitcoin Depot has blamed a challenging state-level regulatory environment for its bankruptcy, pointing to a series of regulatory restrictions and outright bans on crypto ATMs, which are a major conduit for crypto scams. An FBI report on Internet crime in 2024 showed 11,000 reports of fraud involving crypto ATMs – a 99% increase from the prior year. Almost $250 million was reported lost due to such scams, with a majority of it coming from victims over 60 years old. Several states have responded by introducing laws imposing strict compliance requirements or transaction limits on ATM operators, and Indiana and Tennessee have both recently banned the kiosks entirely. Additionally, the company is defending against lawsuits from both Massachusetts and Iowa, which argue that the company uses a misleading pricing structure, knowingly enables crypto scames, and maintains a predatory refund policy.

Verus halted the entire Verus network after the exploit was detected in hopes of limiting further damage.

Transit was previously exploited in 2022 for $21 million, although around 70% of the stolen assets were later returned.

The project has announced they intend to "restor[e] bridge liquidity through a legally structured sale of Foundation's TAC token treasury reserves."

Blockchain research firm Blockaid has linked the attacker to a similar exploit in March 2025 that saw $5 million drained from 1inch. This time, 1inch has asserted that although they use TrustedVolumes as a resolver, the exploit did not involve any of their systems.

Polish authorities have launched investigations into the apparent collapse. Losses have been estimated at 350 million zł (~$96 million).

Poland's Prime Minister Donald Tusk has also recently accused Zondacrypto of sponsoring conservative and right-wing politicians, including Polish President Karol Nawrocki. Nawrocki has repeatedly vetoed legislation aiming to regulate the crypto sector, describing it as overly burdensome to crypto businesses. Tusk has also alleged that Zondacrypto was funded by the Russian mafia and Russian intelligence services. These allegations are also being investigated by Polish authorities, and one report citing the country's Internal Security Agency claims that the Kremlin-linked Tambovskaya Bratva Russian mafia group took over the exchange as far back as 2018.

Volo says they have frozen or recovered all but around $60,000. They have also said they are "prepared to absorb this loss", rather than passing losses along to their users.