Lawmakers acted after federal data showed residents reported nearly $7 million in kiosk-related scam losses across the state alone during 2025.

The measure is not yet law. Its future now depends on negotiations between the Senate and House over the final version of the economic development package. Similar language previously failed twice in the House, once in its bill and once in an earlier budget proposal.

Senate Targets Crypto Kiosk Scams

Consumer advocates and law enforcement officials say crypto ATMs allow scammers to move victims’ cash into cryptocurrency within minutes. The machines resemble traditional cash dispensers and operate in convenience stores, pharmacies and liquor stores across Massachusetts.

Hundreds of these machines are located in convenience stores, pharmacies and liquor stores, giving operators a broad retail presence throughout the state.

Norfolk County Sheriff Patrick McDermott said scams often begin with a phone call or text. Victims are pressured to withdraw savings, deposit the cash into a kiosk and scan a QR code supplied by the caller. The machine then converts the money into cryptocurrency and sends it to an anonymous wallet.

“Once the cash is in there, it’s gone for good,” McDermott said.

FBI Data Shows $6.8 Million Lost

The FBI received 296 complaints involving crypto kiosk scams in Massachusetts during 2025. Reported losses reached $6,834,561, equal to about $19,000 per day. Nationally, the bureau recorded $389 million in losses tied to the same type of fraud over the past year.

AARP Massachusetts supported the Senate action and pushed lawmakers to remove the machines. “A ban on crypto ATMs is now the most effective way to stop the ongoing damage,” state director Jen Benson said in a statement Thursday.

Advocates and elderly residents described the kiosks as a direct channel for scammers seeking fast access to victims’ cash. They also argued that transactions become difficult to recover after funds reach anonymous crypto wallets.

Final Decision Moves to Negotiations

Massachusetts currently has no written rules governing crypto kiosks. It is also the only New England state that leaves the machines unregulated. McDermott said the lack of local safeguards has attracted operators and left removal as the only available response until regulation exists.

Vermont, Minnesota, Indiana and Tennessee have banned crypto ATMs outright. Another 28 states limit their use through different restrictions.

The Senate approved the economic development bill late Thursday night with the crypto ATM amendment included. The vote does not immediately remove any machines or change current law. House and Senate negotiators must now decide whether the provision remains in the final bill sent forward for approval.

The post Massachusetts Crypto ATM Ban Advances After Senate Vote first appeared on Coinfea.

Alaska’s Department of Law alerted victims after Bitcoin Depot Operating LLC sought bankruptcy protection in the Southern District of Texas.

The company operated cash-to-crypto kiosks across Alaska and nationwide. Alaska’s Consumer Protection Unit urged residents to review eligibility and submit claims before the deadline.

More than 3,200 Alaskans reported about $40 million in fraud losses to the FBI’s Internet Crime Complaint Center last year, according to Wasilla State Senator Cathy Tilton. Seniors represented a large share.

How Crypto Kiosk Scams Targeted Victims

Bitcoin Depot’s machines resembled bank ATMs, but they converted cash into cryptocurrency and sent it to a wallet address entered during the transaction. Scammers exploited that process by directing victims to wallets they controlled.

According to the Department of Law, fraudsters often posed as police officers, government agencies, or major businesses. They pressured victims to deposit cash into kiosks and transfer cryptocurrency, leaving little chance of reversing payment.

Cori Mills, Alaska’s acting attorney general, called the technology a double-edged sword. “Cryptocurrency is an emerging financial tool that opens up possibilities for Alaskan consumers, but as with all advancements, there are perils too,” Mills said. She also described the kiosks as machines “used to take advantage of vulnerable Alaskans.”

The department warned that legitimate government agencies do not demand payment through cryptocurrency kiosks. Residents should verify any payment request before sending money.

Alaska Lawmakers Seek Stronger Kiosk Rules

Tilton is sponsoring SB 249, which would require licensing, identity verification, and safeguards for crypto-kiosk operators in Alaska. She linked the bankruptcy notice to her push for stricter oversight.

Regulators and courts elsewhere have acted against crypto ATMs amid rising fraud. Indiana, Tennessee, and Minnesota have banned the machines.

On July 7, a federal judge allowed Tennessee to keep enforcing its ban while CoinFlip challenges the law. FBI complaint data showed nationwide crypto-ATM scam losses reached $247 million in 2024, with older adults among the most common victims.

Bankruptcy Filing Offers Recovery Path

Bitcoin Depot operated more than 9,000 kiosks across North America before filing for Chapter 11 in May. Its first-quarter 2026 revenue fell nearly 50% year over year.

Massachusetts’s attorney general sued the company in February. In Texas, local sheriffs seized company kiosks, while victims lost about $56.8 million to crypto-kiosk fraud last year, the highest total.

Eligible Alaskans may follow the case through the court-appointed restructuring administrator’s claims website. The Department of Law advised residents to type the address into a browser if they distrust email links.

Filing is optional. Victims should not share personal or financial information with anyone offering assistance unless they independently verify that person’s identity.

The post Bitcoin Depot Bankruptcy Gives Alaska Victims July 21 Claim Deadline first appeared on Coinfea.

According to details outlined in the Spring Economic Update 2026, officials plan to ban cryptocurrency ATMs, citing them as a primary channel for scammers and criminal networks. Canada currently hosts nearly 4,000 crypto ATMs, the highest number per capita globally. At the same time, authorities have not introduced industry-specific rules for these machines. Investigations conducted by CBC News identified crypto ATMs as a central tool used in scams across the country.

Canada moves to ban crypto ATMs to limit fraud cases

The reporting formed part of a three-part series that examined how fraudsters use these machines to collect funds from victims. The results showed that crypto ATMs allow fast transfers without requiring a bank account. In many cases, transactions under $1,000 only require a phone number. Moreover, the process does not involve direct human interaction, which limits opportunities to detect suspicious activity.

Canada’s financial intelligence agency, FINTRAC, reached a similar conclusion in a February 2023 review of suspicious transaction reports. The agency identified crypto ATMs as a recurring method for moving funds linked to fraud schemes. In response, officials have pointed to these machines as a key vulnerability within the financial system. The federal government formally introduced the proposed ban through its 2026 economic update.

Officials described crypto ATMs as a “primary method” used by scammers to defraud victims and process illicit proceeds. However, the release included limited operational details on how the ban would be enacted. Moreover, it confirmed that Canadians would still be able to purchase digital assets through other regulated channels. These include brick-and-mortar money services businesses, which are already subject to existing oversight frameworks.

Currently, crypto ATMs operate under the same classification as money services businesses. This category includes foreign exchange dealers, traditional ATMs, and money transfer providers such as Western Union. At the same time, lawmakers are advancing separate legislation targeting crypto use in federal elections. Bill C-25, known as the Strong and Free Elections Act, has passed its second reading in the House of Commons.

The proposal, as reported by Cryptopolitan, would prohibit political parties and related groups from accepting crypto donations. Lawmakers have linked the restriction to challenges in verifying donor identities and tracking the origin of funds. The bill applies to candidates, parties, and third-party advertisers, requiring them to return or redirect prohibited contributions within 30 days.

The post Canada set to ban crypto ATMs as fraud rate climbs first appeared on Coinfea.