Minnesota Bans Crypto ATMs Amid Widespread Scam Reports

Minnesota has banned cryptocurrency ATMs after residents reported losing nearly $1 million in scams since 2023. Governor Tim Walz signed legislation on May 4 to prohibit the installation of crypto ATMs, which are commonly found in gas stations and convenience stores.

The machines were being used by scammers to target seniors, who would be pressured into using them to send money for a loved one's supposed release from jail. According to investigator Paul Haas, victims often feel 'panic and shame' after being tricked, making it difficult for them to report the incident.

State officials reported 70 cases of crypto ATM scams last year, resulting in over $540,000 in losses with an average transaction value of nearly $6,800. Crypto transactions are generally irreversible due to their decentralized nature and lack of consumer protections.