Crypto ATMs Declared 'Probably a Scam' by US Regulator Amid $388 Million Loss
The U.S. Commodity Futures Trading Commission (CFTC) has issued an emergency warning regarding crypto ATMs, labeling demands to transfer money through them as a major red flag for scams.
This stern warning comes after the FBI reported that Americans' losses from such schemes surged 58% over the past year, exceeding $388 million.
The CFTC advises people to treat any instructions from someone claiming to represent a government agency or bank to use a public crypto terminal as 'Probably a Scam', which is a strong indicator of fraud.
Recently, there has been a decline in the number of crypto ATMs in the U.S. market due to various events:
May: The largest operator, Bitcoin Depot, filed for bankruptcy and disconnected its terminals after losing revenue amid mandatory user verification requirements.
June: Authorities in Delaware and New Jersey passed strict laws targeting crypto ATMs, recognizing them as tools for transferring stolen funds.
July: The global crypto ATM market shrank by nearly one-third, losing 10,836 machines, of which 10,380 were removed in the United States alone.
August: Minnesota authorities introduced a total ban, ordering operators to remove all terminals from public places by the end of the year.