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More than 1,200 Cryptocurrency ATMs Cease Operations in the US Following Fraud Prevention Invoice Suggestion
More than 1,200 cryptocurrency ATMs across the United States unexpectedly went offline during the first weekend of March, coinciding with the unveiling of a new bill aimed at addressing fraud in the industry.
On February 25, Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act, emphasizing concerns regarding scams and illegal activities associated with crypto ATMs.
His initiative followed a case involving a constituent who became a victim of fraud.
New Bill Aims for Stricter Regulations on Crypto ATMs to Combat Fraud
The legislation seeks to mandate that ATM operators implement scam warnings, enhance fraud prevention strategies, and provide law enforcement with tools to monitor suspicious transactions.
Despite the installation of 860 new crypto ATMs in the U.S. last month, the abrupt shutdown of 1,233 machines in early March resulted in a net decrease of 1,100 machines globally, according to data from Coin ATM Radar.
While the U.S. experienced the most significant losses, new installations in Europe, Canada, Spain, Poland, Australia, and Switzerland only slightly mitigated the decline.
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
If enacted, the “Crypto ATM Fraud Prevention Act” would impose a $2,000 spending limit for new users at a bitcoin ATM within a 24-hour period, while those wishing to withdraw $10,000 would need to wait over a two-week timeframe.
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According to reports, the bill would require direct communication between users attempting transactions over $500 and issue them a full refund if they report it to the police within a 30-day period.
All other customers would be entitled to a minimum refund of any fees associated with the transaction.
Nevertheless, the United States continues to be the leading player in the crypto ATM market, hosting 29,731 machines, which represent 79.9% of all crypto ATMs globally.
Canada follows with 3,085 ATMs (8.3%), while Australia ranks third with 1,467 (3.9%).
Since mid-2022, the expansion of the crypto ATM landscape has slowed due to evolving regulations and crackdowns on unregistered businesses.
Lawmakers Urge Crypto ATM Operators to Address Fraud
Last year, a group of U.S. Senate Democrats, led by Majority Whip and Senate Judiciary Committee Chair Dick Durbin, called on major cryptocurrency ATM operators to take immediate action against the rising fraud targeting elderly Americans.
At that time, seven Democratic senators, including Elizabeth Warren, issued a statement urging 10 of the nation’s largest crypto ATM companies to tackle the increasing financial losses from Bitcoin ATMs (BTMs).
The senators expressed particular concern for older Americans, noting that individuals aged 60 and above are more than three times as likely to fall victim to BTM-related scams compared to younger adults.
The letters were sent to the CEOs and top executives of Bitcoin Depot, CoinFlip, RockItCoin, Bitstop, Coinhub, Unbank, Athena Bitcoin, Byte Federal, Cash2Bitcoin, and Margo.
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