Delaware Lawmakers Stall Legislation Targeting Cryptocurrency Kiosk Scams

Delaware lawmakers have stalled legislation aimed at regulating cryptocurrency kiosks after it passed unanimously in the House but failed to advance out of a Senate committee. The bill, sponsored by State Rep. Cyndie Romer, proposed banning the machines due to their increasing use as tools for scammers targeting seniors.

AARP Delaware and the Delaware Bankers Association have expressed concern over these scams, which often involve convincing victims to deposit thousands of dollars into digital wallets that are difficult to trace. According to Mike Lawson with the Delaware Bankers Association, 'The bitcoin ATMs are being used as a pool to transfer cash to a digital wallet that is most likely overseas in a foreign country that is very hard to trace and very hard to get back once the fraud is made aware.'

State Representative Cyndie Romer reported that she witnessed an elderly woman using a cryptocurrency kiosk at a Shell gas station, which was unusual given its infrequent use. She stated that stronger action was necessary after researching the issue and learning about these scams.

The legislation stalled despite having support from organizations such as AARP Delaware, the Delaware Bankers Association, and the Delaware Department of Justice. State Senator Spiros Mantzavinos attributed the bill's failure to a scheduling conflict, stating that he believed the bill did not need significant changes before being considered again in 2027.

Mantzavinos emphasized the importance of raising awareness about these scams, particularly among older adults who are often targeted by scammers. AARP Delaware Associate State Director Kim Wharton warned seniors to 'think before they act' when dealing with cryptocurrency kiosks and other potential scams.