Nebraska Issues Cease and Desist Against Bitstop for Unlicensed

Nebraska Issues Cease and Desist Against Bitstop for Unlicensed Money Transmission

The Nebraska Department of Banking and Finance issued a cease and desist order on November 13, 2025, against ATM OPS INC d/b/a Bitstop for operating more than 40 unlicensed money transmission locations across the state since August 2021. The order also cites multiple consumer fraud complaints and a failure to respond to the regulator's prior directive to apply for licensure.

Case Information

Agency Nebraska Department of Banking and Finance Respondent ATM OPS INC d/b/a Bitstop Action Type Cease and Desist Order Date Issued November 13, 2025 Status Pending (15 days to request hearing) NMLS ID 1833409

Key Findings

The Nebraska order details several findings against Bitstop:

Findings cited in the order:

  • Unlicensed operation: Bitstop operated more than 40 money transmission locations in Nebraska without obtaining the required state license, beginning in August 2021
  • Failure to respond: Nebraska sent a directive in July 2023 requiring Bitstop to apply for a money transmitter license. Bitstop did not respond or apply
  • Consumer complaints: The department received multiple fraud complaints from consumers, including failure to deliver purchased Bitcoin and unauthorized charges

Timeline

August 2021
Bitstop begins operating Bitcoin ATM locations in Nebraska without a state money transmitter license
July 2023
Nebraska Department of Banking and Finance sends directive to Bitstop requiring application for money transmitter licensure
2023 - 2025
Bitstop fails to respond to Nebraska's directive or submit a license application. Consumer fraud complaints accumulate
November 13, 2025
Nebraska issues formal cease and desist order. Bitstop has 15 days to request a hearing or the order becomes final

Consumer Impact

The cease and desist order highlights consumer complaints filed with the Nebraska Department of Banking and Finance. Reported issues include:

Nebraska requires money transmitters to obtain state licenses specifically to protect consumers through regulatory oversight, bonding requirements, and complaint resolution mechanisms. Operating without a license means consumers lack these protections.

What This Means for Nebraska Users

If you have used a Bitstop ATM in Nebraska:

  • Keep records of all transactions, including receipts and any confirmation emails
  • If you experienced issues with a transaction (missing Bitcoin, unauthorized charges), file a complaint with the Nebraska Department of Banking and Finance
  • Monitor your accounts for any unauthorized activity
  • Consider using licensed operators for future transactions

Broader Context

This cease and desist order adds to Bitstop's existing regulatory and legal challenges. ATM Ops Inc. d/b/a Bitstop is also involved in litigation related to the Heller Capital Group / PowerCoin enterprise, where court filings identify corporate overlap between Bitstop and entities alleged to have operated a fraudulent scheme involving Bitcoin ATM units.

For a detailed analysis of the Heller/PowerCoin litigation and its connection to Bitstop, see our full litigation analysis.

Bitstop has three adverse actions recorded on the NMLS Consumer Access portal (Connecticut, Ohio, and Nebraska). Consumers can verify operator licensing status at nmlsconsumeraccess.org.

Next Steps

The cease and desist order gives Bitstop 15 days from the date of service to request a hearing before the Director of the Nebraska Department of Banking and Finance. If no hearing is requested, the order becomes final and enforceable. We will update this article as the situation develops.

Legal Disclaimer: The information in this article is based on the Nebraska Department of Banking and Finance's cease and desist order and publicly available regulatory records. The order represents the regulator's findings and allegations. Bitstop is entitled to request a hearing and contest these findings. This article is for informational purposes only and does not constitute legal advice. Consumers with concerns should contact the Nebraska Department of Banking and Finance directly.
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