The caller then tells the victim to deposit cash into a Bitcoin ATM. The scammers say the payment will clear up an arrest warrant, unpaid fine, or overdue bill, according to KENS 5 reporting. Police say the callers keep victims on the phone during the entire transaction. This means they can’t ask a relative, ask a store employee for help, or call 911 before the money is converted to crypto and moved out. During the ordinance approval process, SAPD data showed nearly 38% of the victims identified were 66 or older, according to the San Antonio Report. Victims were as young as teenagers and as old as 90 years.

San Antonio passes targets ATM scams with new ordinance

According to reports, about 88% of the cases resulted in losses of less than $50,000. But four individual cases were over $1 million each. The city identified San Antonio’s 193 crypto kiosk locations. That number beats Dallas, Fort Worth, or Austin, according to the San Antonio Report. Operators are required to post warning signs in English and Spanish at each crypto machine. The signs must be in color-coded 18-point font and must be placed so that users standing at the kiosk can read them directly.

The signs will list common crypto scam tactics and tell anyone feeling pressured to send money to call 911 instead. The SAPD must generate and distribute the signs and enforce compliance. Failure to post them subjects the company to a fine of $100 to $500 for each violation, each day that a violation continues being a separate offense. The ordinance goes into effect on July 1. San Antonio isn’t the only Texas jurisdiction to go after crypto kiosk fraud. Smith County Sheriff Larry Smith met with state legislators earlier this week to lobby for a statewide ban on the machines.

Sheriff Smith first publicly called for a ban in May after an elderly woman lost $13,000 to an inmate running a scam from a Georgia prison. Among those who attended the meeting were the office of State Sen. Bryan Hughes, State Rep. Cole Hefner, State Rep. Daniel Alders, and officials with the Texas Financial Crimes Intelligence Center. The report noted that Indiana, Tennessee, and Minnesota already have a ban on crypto ATMs at the state level.

Cryptopolitan has previously reported that Bitcoin Depot, which has more than 9,000 crypto ATMs across North America, filed for Chapter 11 bankruptcy in May after its Q1 2026 revenue fell by ~50% year over year. In February, the Massachusetts Attorney General sued the company for more than half of its ATM revenue in the state, which was linked to transactions associated with scams. US Secret Service Investigative Analyst Laura Bravo told KSAT that crypto moves faster than traditional money and gets harder to recover once it reaches a foreign exchange.

Crypto ATMs also isolate victims by stripping out the human interaction a bank teller would provide, Bravo noted. This gives the scammers more control, and the victim follows phone instructions at a crypto machine. SAPD’s advice is blunt. No government agency or utility company will ever ask you to pay via a Bitcoin ATM. That’s the case even if the caller knows personal details, uses the name of a real officer, or spoofs a real phone number. When cash is converted to crypto and sent to a scammer’s wallet, the transaction cannot be reversed.

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According to reports, residents in Murfreesboro, Tennessee, have lost around $4 million to Bitcoin scams, according to the Murfreesboro Police Department. The scheme relies on impersonation, followed by fear and urgency. Scammers use this approach to target dozens of residents, primarily elderly victims.

Residents in Murfreesboro suffer losses to Bitcoin ATM scammers

According to an official police statement, the scam begins with a phone call claiming to be from law enforcement. The caller tells victims they have missed a court date and have an active arrest warrant, creating extreme fear and urgency. The scammers then provide instructions to resolve the issue, offering a false sense of hope. Victims are told to withdraw large amounts of cash and visit the nearest Bitcoin ATM.

Once at the machine, victims are instructed to deposit the cash into a cryptocurrency wallet. The scammers provide a QR code and demand confirmation of the payment. As soon as the money is deposited into the wallet, it is effectively gone and extremely difficult to recover. The Murfreesboro Police Department issued a warning about cryptocurrency ATM scams.

Tommy Massey told local media, “No local, state, or federal law enforcement officer will ever ask for money to dismiss a warrant.” He added that police do not handle cash. Bitcoin ATM scams are difficult to investigate because scammers often operate outside the United States. Investigators pointed to countries such as India, Pakistan, Ukraine, and several African nations.

Authorities noted the difficulty in recovery

Aside from Murfreesboro, the scam has also been seen in Albemarle County. According to local news outlets, 30 cases were reported in the past 14 months. Victims lost an average of $26,000 per case, based on a statement from the Albemarle County Police Department. Police said every reported victim was either over 60 years old or considered vulnerable. Many victims had worked their entire lives and were living in retirement. Some were forced to rely on family again after losing their savings.

Detective Marcus Baggett described the financial damage as devastating. He continued, “We have elderly folks who have worked their entire career to be retired. And after these types of losses, they may find themselves living with elderly parents.” First Sergeant Adam Culpa said, “If you do put money into a Bitcoin ATM, it prints out a receipt with the address on there.” He added that the receipt is often the only traceable starting point. Without the receipt and wallet data, “it’s nearly impossible to follow the trace.”

Data from the Federal Bureau of Investigation (FBI) ranks Virginia 10th based on the number of reported cases. The state is also placed 15th in total losses. Crypto ATM scams are considered new for many law enforcement departments. The increasing scale of victims and losses requires coordination across all jurisdictions. Authorities advise people to actively protect themselves from crypto ATM scams. If someone asks for payment via a crypto kiosk, it’s a major red flag, and the target victim should report the incident to law enforcement quickly.

The post Murfreesboro residents lose $4 million to Bitcoin ATM scammers first appeared on Coinfea.

According to the new development, Customers must show ID for every transaction at its kiosks, as the company aims to improve protection against crypto ATM scams. Bitcoin Depot has been in business since 2016 and has over 25,000 kiosks around the world. The company is the first major BTC ATM operator to require ID verification for each transaction.

Bitcoin Depot activates new policy for crypto ATM transactions

The policy was activated this month and is now applied throughout Bitcoin Depot’s U.S. kiosks. It aims to “prevent account sharing, identity theft, and account takeover attempts as deployment continues.” The release had no official word yet on deployment timing in other countries. But the rollout of the new policy in the United States comes after Bitcoin Depot faced rising complaints about BTC ATM scams.

In addition to the new feature, Bitcoin Depot will pay $1.9 million to Maine to settle claims involving scams on its machines, according to a report by Cryptopolitan. The Bureau of Consumer Credit Protection (BCCP) spent two years investigating Bitcoin Depot’s kiosk operations. The probe was launched after residents filed complaints saying scammers had used the company’s kiosks to defraud them.

Maine residents scammed via Bitcoin Depot kiosks qualify for refunds under the state settlement. Victims qualify if they lived in Maine from 2022 to 2025 and used a Bitcoin Depot kiosk there to convert cash to cryptocurrency. They must also have transferred the money to an unhosted wallet controlled by a scammer. Victims must file a claim on or before April 1, 2026, and refunds are expected in May 2026.

Americans have lost more than $333.5 million to Bitcoin ATM scams

American residents lost over $333.5 million to Bitcoin ATM scams in 2025, based on data from the Federal Bureau of Investigation (FBI). This number is far greater than what Bitcoin Depot is paying to Maine residents. In 2024, the FBI reported losses of $250 million to crypto kiosk fraud. The figure has since increased by 33.4% to $333.5 million in one year. Coin ATM Radar shows that the top 10 operators run 27,419 crypto ATMs in the US.

This equates to 87.7% of all crypto kiosks across the country. The remaining 12.3% or 3,838 crypto ATMs are managed by 131 operators. The number of crypto ATMs has increased sharply in the U.S. from 4,251 to 31,256 kiosks spread across the country. In February 2026, 254 crypto kiosks were installed in the U.S. The speed of installations is averaging at 16 crypto kiosks daily. This creates more opportunities for scammers to target new victims.

Also, Athena Bitcoin, a crypto ATM operator, has received multiple lawsuits and enforcement actions. The District of Columbia Attorney General sued the company last September. The lawsuit alleges Athena Bitcoin knowingly facilitated fraud through its crypto kiosks. Authorities found that 93% of all deposits made through Athena Bitcoin ATMs were connected to scams. Around 50% of transactions had been flagged by the company as suspected fraud.

The post Bitcoin Depot adds ID checks after uptick in crypto ATM scams first appeared on Coinfea.

The warning was issued by Attorney General Kris Mayes, stating that Arizonans lost more than $177 million to crypto ATM-related fraud in 2024 alone. State authorities say the scams are designed to target the elderly and have relied on pressure tactics to pressure the victims to move cash, in short, through crypto kiosks as quickly as possible.

Arizona AG issues warning against crypto ATM scams

As a result, the Attorney General’s Office has initiated a new fraud complaint form and encouraged victims to report fraud incidents within 30 days to improve the prospects of recovering funds. Mayes said scammers routinely masquerade as law enforcement agencies, banks, utilities, or even family members in trouble. The callers will frequently claim to have experienced a breach of an account or a legal emergency, then direct victims to withdraw cash and deposit it at a cryptocurrency ATM.

Once done, the funds are irreversibly transferred to wallets that are controlled by fraudsters. According to the Attorney General’s Office, any requirement to use a crypto ATM should be seen as a serious red flag. Officials stressed that legitimate businesses and government agencies do not accept payment at cryptocurrency kiosks under any circumstances.

The magnitude of the problem is not confined to Arizona. Nationwide, Americans suffered $246 million in losses from crypto ATMs in 2024, with victims averaging 60 years old or older, according to data from federal authorities. According to CoinATMRadar, about 31,339 crypto ATMs have been installed across the United States, indicating widespread accessibility.

Federal agencies have raised similar concerns. The Federal Bureau of Investigation said complaints related to Bitcoin ATM fraud continue to increase sharply. Its Internet Crime Complaint Center reported over 12,000 complaints and over $333.5 million in losses from January through November 2025, which are above its numbers from the same period a year earlier.

Other states draft measures to tackle crypto crime

In response to mounting losses, Arizona enacted legislation regulating crypto kiosks last year. The law requires operators to have clear, multilingual fraud warnings, 24/7 live customer support, and daily transaction limits in place. New customers are subject to a daily limit of $2,000, and existing users are subject to a daily limit of $10,500.

The measure was the only crypto-related one signed in 2025 by Governor Katie Hobbs, who vetoed four other Bitcoin-focused proposals, including the Arizona Strategic Bitcoin Reserve Act. When the kiosk law was presented to state officials, they argued it was a consumer protection measure and not an endorsement of digital assets. Arizona’s approach is similar to steps taken in other jurisdictions.

Cities such as Spokane and states such as Illinois have enacted restrictions or stepped up oversight to reduce fraud from crypto ATMs. There is also an increase in enforcement actions. Cryptocurrency automated teller machines have been subject to fines associated with scamming, such as a recent $1.9 million settlement between Bitcoin Depot and Maine regulators.

According to authorities, the deal was a response to failures to prevent fraudulent transactions on the company’s machines. FTC data indicates that bitcoin ATM losses rose from $78 million in 2022 to $114 million in 2023, more than doubling in two years. Older people are still the most affected group. Victims aged 60 and over accounted for 71% of bitcoin ATM losses in the first half of 2024, totaling $46 million.

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The operator in Chicago, which is based there, confirmed that it employed advisors to look into strategic options, though it demanded that the process indicate long-term planning and not a response to the case.

Strategic review moves forward amid industry consolidation

Crypto Dispensers claimed that it is considering making a sale, a merger, or an overhaul, which is likely to help its digital asset infrastructure platform. The company has machines where customers can purchase or sell Bitcoin and other tokens in the United States. 

The executives observed that a high rate of consolidation in the industry is affecting the review since most companies are struggling to survive in the changing market conditions due to the need to scale. The company has said that it is geared towards growth and that new development plans are under consideration.

Federal accusations raise concerns for potential buyers

The prosecutors argue that the company processed at least ten million dollars involved in crimes involving wire fraud and narcotics trafficking. According to investigators, customers were putting money in the machines and were watching the money transferred to cryptocurrency via Isa and his network of digital wallets. 

The government claims that Isa did not comply with the major anti-money laundering policies and has not implemented identity checks on high-risk activity. Both Isa and the company were found not guilty and are charged with one count of conspiracy to commit money laundering, which comes with a sentence of up to twenty years in a federal correctional facility. 

The prosecutors are also pursuing forfeiture of company properties and can also seek other properties as necessary. Critics caution that the case with the criminal can be used to negotiate a sale or impact valuation.

Market pressure and regulation challenge crypto businesses

The company’s move comes at a challenging time in the crypto market. Bitcoin has dropped over the past weeks, following a booming month at the beginning of the year, and the decline has wiped out billions of dollars’ worth. The sentiment is lower and has wreaked havoc on retail and institutional traders, resulting in a decrease in trade volume. The reduced volumes have impacted companies that operate on continuous trades, such as exchanges, payment processors, and ATM operators. 

Crypto Dispensers also generate income through transactions, and the decline in activity decreases their profit. Meanwhile, the federal agencies have stepped up the level of compliance failures and money laundering risks in the industry. Firms are currently having to endure increased monitoring system expenses and special personnel costs, and these are burdensome to small firms. 

According to industry analysts, volatile market trends and government regulations are compelling most companies to either combine or leave. Crypto Dispensers is at a crossroads because it is dealing with the legal risk, decreasing revenues, and increasing regulatory pressures in its quest to sell itself in an effort to transform its future.

The post Bitcoin ATM firm considers sale as legal scrutiny intensifies first appeared on Coinfea.

Nicole McKee, an associate justice minister, confirmed the changes, saying that the measure targets criminals who exchange physical cash for digital assets.

The government will increase enforcement and regulation. A new economic sanctions regime will help authorities detect and interfere with money laundering operations across economic sectors.

Stronger Regulations to Target Financial Crime

The new bill will better equip the Financial Intelligence Unit to request information from banks and dealing businesses. The law can provide some situational context about a person of interest and questionable transactions. Reforms are meant to increase monitoring and strike a balance in the operations of companies that comply.

A new rule also limits international cash transfers to $ $5,000. This restriction applies to all remittance services in New Zealand. The authorities are convinced that the ban will complicate cash offshoring by organized criminal groups.

Source: Coin ATM Radar

The reforms come after there was concern about the misuse of crypto ATMs, where anonymous cash conversion into digital currency was taking place. New Zealand’s move is contrary to global trends. As of January 2023, there are more than 38,000 cryptocurrency ATMs across 67 nations, and they are made and supported by hundreds of different manufacturers and service providers.

Crypto ATMs Outlawed Despite Global Expansion

The world crypto ATM system is expanding. It has 38,537 active machines worldwide, with services offered in 67 countries. These apparatus open the gateway to Bitcoin and other virtual money-making using deposits of physical cash. Most of them have local AML regulations, and identity verification and transaction limits vary.

Whereas the rest of the Jurisdictions view crypto ATMs as regulated financial services, New Zealand’s position is contrary to this perception. Authorities believe that the elimination of such machines will seal a smuggler of illicit money’s holes. The government considers this to be needed in order to defend the financial system and enhance more general AML/CFT ambitions.

Focus on Risk-Based Business Relief Measures

The government is undertaking to assist the businesses that will abide by the ban. Phone amendment Two amendment measures are in Parliament to reduce the load on low-risk entities. 

Other requirements, including verifying the addresses of lower-tier clients and conducting due diligence against low-tier trusts, may be scrapped.

By the end of 2025, the affected businesses will be relieved practically. The government is aiming to have a more versatile and streamlined AML framework. 

This strategy provides a balance between controlling criminal risks and ensuring efficient operations that ensure New Zealand remains competitive in the provision of financial services.

The post Crypto ATMs Face Ban in New Zealand Under New Anti-Money Laundering Policy first appeared on Coinfea.

According to details, Byte Federal’s data breach exposed the sensitive information of over 58,000 users to the hackers. The details revealed that the hack occurred on September 30, but was discovered on November 18. The hackers breached Byte Federal’s system, gaining access through a vulnerability in GitLab, a developer tool.

Hackers breach Byte Federal through GitLab vulnerability

According to reports, the stolen data includes names, phone numbers, birth dates, social security numbers, transaction records, user photos, and government ID cards. After Byte Federal discovered the breach, it acted quickly to plug the gap and limit the extent of the harm, according to its filing with the attorney general in Maine.

The company reported that the hackers were able to breach its system through a bug in third-party developer software GitLab. The bug created the perfect opening for the hacker to slip on and steal the sensitive user details. Byte Federal became one of the targets of hackers due to its 1,200 ATMs positioned in strategic locations across the United States. These Bitcoin ATMs are fed sensitive data which it stores directly.

The company noted that it has taken several steps to make amends, including resetting user passwords and stepping up its security protocols. The ATM operator also assured its users that it was taking measures to ensure their data were safe. “We have no evidence that your personal information was compromised or misused in any manner. Nonetheless, we are taking precautionary steps to safeguard your data,” Byte Federal said.

Despite the assurances, the massive breach has raised eyebrows in the country, with most people questioning Byte Federal’s capacity to secure data. The company has also urged its users to change their passwords immediately, adding fraud alerts if necessary. Byte Federal also asked them to consider freezing their accounts with credit bureaus to prevent identity theft while keeping their eyes on their accounts for unsanctioned transactions.

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