Tennessee Cracks Down on Bitcoin Scams After $15M Heist

Tennessee banned Bitcoin ATMs in 2025 after scammers stole over $15 million from residents, but cryptocurrency businesses are still fighting the ban in federal court.

The scams have devastated victims across the state, with Brentwood police responding to multiple cases of people being manipulated into feeding thousands of dollars into the machines.

According to the FBI, the Internet Crime Complaint Center received over 13,400 complaints about cryptocurrency kiosks in 2025, with losses exceeding $388 million - a 23% increase in complaints and a 58% increase in losses from 2024.

The ban was successfully defended by Tennessee Attorney General Jonathan Skrmetti after cryptocurrency businesses sought a preliminary injunction to block the law.