- FBI reports $240 million lost to crypto ATM scams in the first half of 2025.
- Spokane enacts one of the nation’s earliest crypto ATM bans.
- Lawmakers debate local, state, and federal action as fraud surges.
Crypto ATM scams have become one of the fastest-growing crypto-frauds in the United States. This surge has significantly prompted renewed calls for nationwide restrictions and outright bans.
According to the FBI’s latest findings, American digital asset users lost almost $240 million to crypto ATM scams in the first six months of 2025. This marks a 2x surge from the incidents reported in the first half of 2024. Amid these concerns, policymakers are now questioning the widespread adoption of Bitcoin machines across the country. They are also analyzing the ways in which illegal actors misuse these systems.
Crypto ATM Scams Surge, Millions Vanish Overseas
In a CNBC report on growing crypto ATM scams, the FBI revealed that the US is facing significant losses to these threats. About $240 million was lost in the first quarter of 2025, nearly twice the losses reported in the same period of 2024.
The report also revealed that the US lawmakers are now planning to put a nationwide ban of crypto ATMs. As highlighted by Spokane Police Detective Tim Schwering, a notable rise in crypto crimes was clearly visible since 2023. Positing that the laundered money has flown to foreign countries, including China, Russia, Nigeria, and other far-off locations, he added,
“Cases started flowing my way where people were getting ripped off by cryptocurrency machines. You couldn’t get to anyone or get the money back.”
A Crypto ATM Shutdown Ahead?
Amid increasing crypto ATM scams, lawmakers step in, underscoring the need for stringent regulations in the area. Councilman Paul Dillon called for a statewide ban on crypto machines. He stated,
“We wanted to see what levers we could pull locally. The compelling stories moved us into action. There are ideological differences on our city council, but the ban passed unanimously and I am proud.”
The Spokane ordinance took effect in June, giving businesses a grace period to remove the machines. While this marked one of the earliest crypto ATM banks in the US, more states later emerged. In response to the move, many ATMs were removed.
Now, Detective Schwering believes that a federal ban would be the best option to counter the scams. With lawmakers across the country weighing in on the matter, arguing for more restrictions, a nationwide ban on crypto machines is likely.
Victims Left with No Way Back
Adding more points to underscore the devastating situation, Schwering shared an example where the victim lost a staggering $900,000. Under a scammer’s instructions, the victim was forced to send the entire crypto holdings to a nearby machine. The other examples highlighted by the detective also indicated that the victims lost their complete savings to crypto ATM scams. Schwering also noted that there were incidents where the victims committed suicide without being able to bear the massive loss.
As per the report, there was a similar pattern within these crypto ATM scams as hackers targeted elderly or socially isolated investors. Similar to phishing scams, these attackers often impersonate government officials or act as romantic partners to gain the victims’ trust.
The detective also highlighted the challenges the team faced in tracking these incidents as the perpetrators were often based overseas and remained beyond the reach of US law enforcement. He added, “My job is to try to protect people, and it’s very frustrating…So, we could at least change policy.”
