- Valuto Inc. (d/b/a CoinMover) filed Chapter 7 bankruptcy on December 2, 2025
- Over 200 retail locations across New England now shuttered
- $1.38M in funding raised before the company ceased operations
- Chapter 7 means liquidation — assets sold to pay creditors, no reorganization
- Joins Coin Cloud and Bitcoin of America as Bitcoin ATM operators that went bankrupt or shut down
Valuto, Inc., the Massachusetts-based company operating the CoinMover Bitcoin ATM network, has filed for Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court for the District of Massachusetts.
Case Information
About CoinMover
CoinMover was founded in 2018 and headquartered in Lynn, Massachusetts. The company operated a network of Bitcoin ATM kiosks primarily across New England, including Massachusetts, New Hampshire, Rhode Island, and Connecticut.
The company marketed itself as offering higher transaction limits than competitors, allowing customers to purchase up to $9,000 instantly and up to $50,000 per day. CoinMover was registered as a Money Services Business (MSB) with FinCEN (registration #31000243170322).
According to company filings, CoinMover had raised approximately $1.38 million in funding and operated over 200 retail locations.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a liquidation proceeding. Unlike Chapter 11 (reorganization), Chapter 7 typically means the business will cease operations and its assets will be sold to pay creditors. A court-appointed trustee will oversee the liquidation process.
For CoinMover customers: If you have pending transactions, funds held by CoinMover, or other claims against the company, you may need to file a proof of claim with the bankruptcy court to potentially recover funds. Consult the court docket or a bankruptcy attorney for guidance.
Prior Legal Issues
Before the bankruptcy filing, Valuto Inc. faced other legal challenges:
- 2022: Eric Olson (Digital Cash Services, LLC) filed suit against Valuto, Inc. d/b/a CoinMover in Essex County District Court (Case No. 2277CV00790)
- Additional litigation involving company executives Michael Scanlan (President) and Steve Gormley (CEO/Director) has been documented in Massachusetts courts
Industry Context
CoinMover's bankruptcy adds to a challenging period for the Bitcoin ATM industry. The sector has faced increased regulatory scrutiny, with the FBI reporting that Bitcoin ATM scams resulted in over $333 million in losses in 2025. Several operators have faced enforcement actions or gone out of business, including:
- Bitcoin of America - Shut down in March 2023 following CEO conviction
- CoinCloud - Filed Chapter 11 bankruptcy in February 2023
- Athena Bitcoin - Facing DC Attorney General lawsuit and stock down 84%
What Customers Should Do
If you were a CoinMover customer or have claims against Valuto, Inc.:
- Monitor the case: Check the bankruptcy court docket for meeting of creditors dates and claim deadlines
- File a proof of claim: If you have outstanding funds or claims, file with the court before the bar date
- Preserve records: Keep all transaction receipts, account statements, and communications
- Use alternative operators: Consider other Bitcoin ATM providers in the New England area