- Minnesota lawmakers are planning to ban crypto ATMs.
- Rep. Erin Koegel introduced HF 3642, a bill that will stop the kiosks’ operations in the state.
- More than $500,000 has been lost to scams related to these machines.
Minnesota lawmakers are moving to ban crypto ATMs after scams linked to these machines cost residents over $500,000 last year. The lawmakers believe that crypto kiosks, also known as Bitcoin ATMs, make it easier for hackers to exploit vulnerable residents.
DFL Rep. Erin Koegel recently introduced HF 3642 to halt the operation of these machines state-wide. The bill has secured broader support from law enforcement and the Department of Commerce, as they believe that the measure is crucial to protecting residents from increasing crypto ATM hacks.
HF 3642 Aims to Ban Crypto ATMs in Minnesota
Reportedly, Minnesota lawmakers have been discussing a bill that would ban crypto ATMs as attacks on these machines increased significantly. In response to these rising concerns, Rep Erin Koegel, co-chair of the House Commerce Finance and Policy Committee, introduced HF 3642.
The bill intends to stop the operation or installation of “virtual currency kiosks” anywhere in the state. Lawmakers will also remove nearly two dozen existing laws that currently regulate crypto ATMs.
Koegel said that police have called the kiosks a “prime target” for scammers. “We have heard from our law enforcement officials that they are a prime target who are looking to take advantage of our loved ones,” stated Koegel.
This comes amid the United States’ wider efforts to curb the growing crypto kiosk scams and hacks. Recently, Time of Blockchain reported the loss of $240 million in Q1 2025 to related attacks, sparking caution. The report also stated that lawmakers are planning to impose nationwide restrictions on crypto ATMs.
Elderly Residents Targeted
Citing examples, the investigating team highlights the risks of these machines. For example, Woodbury Police Detective Lynn Lawrence stated that a senior citizen, who spent her monthly earnings through 10 BTC transactions over six months, ultimately needed help from adult protection services. Lawrence stated, “These machines remain one of the most effective tools that scammers are continuing to use to steal money,” adding,
“She was already vulnerable with fixed income and food and housing insecurity. APS, adult protection services, had to become involved due to her dire circumstances. She was afraid she was going to have to live out of her car because she had no money left.”
Sgt. Jake Lanz of the St. Cloud Police Department shared the story of an elderly woman who was pressured into handing over $80,000 through a crypto ATM. He stated,
“These machines remain one of the most effective tools that scammers are continuing to use to steal money…It’s definitely a target of our aging population…These cases are incredibly difficult for us based on how the money moves from the atm and then transactions that typically lead overseas.”
State Officials Back HF 3642
As the crypto ATM hacks have become a serious issue, with millions reported to have lost in multiple incidents, state officials support the HF 3642 bill. Minnesota Department of Commerce spokesperson Sam Smith stated that the department supports the bill and plans to introduce additional measures to support residents.
Smith noted, “The department strongly supports HF 3642. In the coming days, the department will also present a broader protection proposal that includes this ban.”
