Crypto ATMs Turn into Fraud Hotspots, FBI Issues Urgent Alert
Fresh data from the Federal Bureau of Investigation reveals that scams involving cryptocurrency ATMs have led to over $240 million in losses across the United States in the first half of 2025 — nearly double the amount reported in the same period last year. The surge has triggered alarm among law enforcement and local governments.
Wave of Bans Spreads Across States
Spokane, Washington, has become the largest U.S. city to implement a full ban on crypto ATM installations, setting a precedent for other municipalities. The move reflects growing concerns over financial crime and consumer protection.
Several states, including Arizona, Arkansas, Vermont, and Saint Paul, Minnesota, are now evaluating similar restrictions. Lawmakers argue these machines are frequently exploited for ransomware payments, money laundering, and scams targeting vulnerable populations, especially seniors.
US Hosts 80% of Global Crypto ATMs
- Despite tightening rules, the U.S. remains home to the vast majority of crypto kiosks worldwide
- Most units are placed in convenience stores, shopping centers, and low-regulation zones
- Lax transaction limits enable rapid movement of illicit funds
As scrutiny intensifies, the future of decentralized financial access points hangs in the balance. Experts warn that without stronger compliance standards, more cities may follow Spokane’s lead, fundamentally altering how digital assets are accessed offline.