Coinhub Sued by Massachusetts AG Over Crypto Kiosk Scams
Massachusetts Attorney General Andrea Joy Campbell has sued Coinhub, one of the largest bitcoin operators in the country. The lawsuit highlights concerns about scams linked to kiosks amid the collapse and controversy surrounding Bitcoin Depot. In a case that underscores broader enforcement challenges, five people lost approximately $128,000 at a single machine in Haverhill.
A June 7, 2023 investigation found that one scammer had steered a victim into cryptocurrency purchases, resulting in a substantial cash loss of $21,790. Unlike 32 other states, Massachusetts currently lacks robust regulation of crypto kiosks, creating vulnerabilities and a 'digital black hole' for cash.
The state hosts approximately 500 crypto kiosks, with Coinhub operating about 2,000 machines nationwide. Crypto machines have rapidly become one of the preferred tools used by scammers to move cash into the digital realm, thwarting law enforcement crackdowns. In 2025 alone, the FBI reported $389 million in losses connected with these scams.