Massachusetts Senate Bans Crypto ATMs After $7 Million in Scam Losses

Massachusetts residents have lost nearly $7 million to crypto ATM scams over the last year alone, according to AARP. The state's Senate has passed legislation to ban these machines as part of its economic development bill.

The virtual currency kiosks, also known as crypto ATMs, allow users to buy and sell cryptocurrencies like Bitcoin using cash. In some cases, scammers have posed as authority figures, inventing emergencies that require immediate money transfers through a crypto ATM.

Senator John Cronin filed the amendment to ban crypto ATM kiosks in Massachusetts. 'I was proud to pass the amendment that bans crypto ATM kiosks, but more importantly that saves people in the commonwealth from future predatory scams,' he said in a statement.

The bill now needs to be agreed upon by both chambers before it can go to Governor Maura Healey's desk for signature. Four states and some towns in Massachusetts have already banned crypto ATMs.