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Crypto ATM Scams Keep Climbing as States Move to Regulate and AGs Sue Major Operators

Fast, irreversible transfers leave victims with few recovery options, according to law enforcement.

Overview

  • Federal data show nearly $250 million lost to crypto ATM schemes in 2024, more than double the prior year, with tens of thousands of machines now in use nationwide.
  • Scammers coerce victims through urgent impersonation calls to feed cash into kiosks that convert funds to cryptocurrency, a tactic experts say disproportionately ensnares older adults.
  • Washington, D.C., sued Athena Bitcoin alleging most local transactions were fraudulent and that seniors were heavily affected; Athena denies wrongdoing and cites warning screens and safeguards.
  • Iowa’s attorney general filed separate suits against Bitcoin Depot and CoinFlip over alleged excessive, deceptive fees tied to scam-driven transactions; both companies dispute the claims.
  • AARP backs tighter rules and daily caps as at least 17 states adopt regulations, while Texas’ proposed 72‑hour hold stalled even as a law enabling seizure of crime‑linked crypto took effect on Sept. 1, and officials report only rare recoveries such as Texas FCIC’s $205,000 and a handful of police‑assisted reversals.