Tennessee Bans Bitcoin ATMs Amid $4.1 Million Scam Losses
Tennessee has become the second state in the US to ban Bitcoin and cryptocurrency ATM machines after a successful legislative push backed by evidence gathered by the Murfreesboro Police Department.
The law, signed by Governor Bill Lee on July 1st, came into effect as House Bill 2505, enacted as Public Chapter 766. This decision was influenced by an investigation that revealed victims in Murfreesboro lost nearly $4.1 million through cryptocurrency kiosk scams over a six-month period.
The investigators found that scammers impersonated law enforcement officers and coerced elderly residents into withdrawing money from their bank accounts to deposit it into Bitcoin ATMs, claiming it would 'clear' their names.
'The new state law benefits both law enforcement and users,' said Fraud Detective Sgt. Tommy Massey. 'It reduces the number of cryptocurrency scams. These machines also charge exorbitant fees, up to 40 percent, to convert currency into Bitcoin.'