Over 1,200 Crypto ATMs Go Offline in the US After Senator’s Bill to Combat Scams

Highlights:

• Over 1,200 crypto ATMs in the U.S. shut down in early March.
• The decline follows a senator’s proposal for a bill to prevent scams and safeguard seniors using crypto ATMs.
• The U.S. leads with 79.9% of global crypto ATMs despite a recent decline.

In early March, over 1,200 crypto ATMs mysteriously went offline in the U.S. The sudden drop occurred days after Illinois Senator Dick Durbin proposed the ATM Fraud Prevention Act on February 25. The legislation aims to mandate scam warnings on ATMs, improve fraud prevention, and give law enforcement tools to track suspicious transactions.

While the U.S. faced the biggest crypto ATM losses, new installations in other regions partially offset the decline. Countries such as Canada, Spain, Poland, Australia, and Switzerland saw an increase in the number of crypto ATMs, contributing to a modest offset. 

Senator Proposes Bill to Curb Rising Crypto ATM Scams

On Feb. 25, speaking from the Senate floor, Senator Durbin shared a story about a constituent who was scammed. A fraudster falsely claimed that authorities had issued an arrest warrant for him. The scammer then instructed the man to deposit $15,000 at a cryptocurrency ATM to avoid jail. The Illinois Senator called cryptocurrency ATM fraud an alarming trend. He proposed a bill to add safeguards, mainly protecting seniors.

“This bill will require crypto ATM operators to warn consumers about scams and take reasonable steps to prevent fraud at their machines,” said Senator Durbin.

If enacted, the Crypto ATM Fraud Prevention Act would impose a $2,000 daily spending limit for new users at Bitcoin ATMs. Those seeking to withdraw $10,000 would need to wait over two weeks. According to reports, the bill would mandate direct verification for users making transactions over $500.

Additionally, if a user reports the transaction to the police within 30 days, they would be eligible for a full refund. For all other cases, users will still get a refund for any fees charged during the transaction.

I’m on the Senate floor announcing new legislation—my Crypto ATM Fraud Prevention Act—to help stop fraud at crypto ATMs. Watch. https://t.co/JZqjfYkhat

— Senator Dick Durbin (@SenatorDurbin) February 25, 2025

US Leads Cryptocurrency ATM Industry Despite Recent Decline

Although 860 new crypto ATMs were installed in the U.S. last month, the shutdown of 1,233 in the first three days of March caused a global net loss of 1,100. Despite recent changes, the United States still led the crypto ATM industry in March, with 29,731 machines accounting for 79.9% of the global total.

Canada follows in second place with 3,085 ATMs (8.3%), while Australia ranks third with 1,467 ATMs (3.9%). There are now 37,226 active crypto ATMs worldwide.

Lawmakers Urge Crypto ATM Operators to Tackle Fraud

Last year, a group of U.S. Senate Democrats, led by Dick Durbin, urged crypto ATM operators to tackle fraud targeting elderly individuals. On Sept. 12, seven Democratic senators, including Elizabeth Warren, urged 10 major firms to address rising losses from Bitcoin ATMs. The letters were addressed to the CEOs and top executives of Bitcoin Depot, CoinFlip, RockItCoin, Bitstop, Coinhub, Unbank, Athena Bitcoin, Byte Federal, Cash2Bitcoin, and Margo.

The senators highlighted concerns for older Americans, stating that those aged 60 and above are over three times more likely to be targeted by crypto ATM scams than younger adults.

Criminals are contacting, threatening, and coercing elderly Americans into depositing large sums of money into criminals’ crypto wallets using Bitcoin ATMs.

We’re telling those companies: it’s time to stop this. pic.twitter.com/Hbc7MzINkR

— Senator Dick Durbin (@SenatorDurbin) September 12, 2024