Minnesota Crypto ATM Ban Takes Effect Amid $1 Million in Reported Scams

Minnesota's ban on cryptocurrency ATMs took effect on Saturday after state officials reported that residents had lost nearly $1 million in scams involving the machines since 2023. Democratic Gov. Tim Walz signed legislation May 4 banning the installation of crypto ATMs, also known as kiosks, which are commonly found at gas stations and convenience stores.

The ban targets seniors who are disproportionately targeted by scammers using these machines. Investigators said that scammers often impersonate law enforcement officers and pressure elderly victims into sending money for a loved one's supposed release from jail through nearby crypto ATMs.

'When victims call our office after a crypto kiosk scam, you can hear the panic and shame in their voices,' investigator Paul Haas said. 'By the time victims realize they were deceived, the emotional and financial damage can be devastating.'

Last year alone, there were 70 cases of people falling victim to these kinds of fraud schemes, with over $540,000 lost and an average loss per transaction of nearly $6,800.