The rise of crypto ATMs has been met with controversy in recent years. In 2025, the FBI reported $333 million in losses from crypto ATM scams, and several states have since banned these machines outright.
Crypto ATMs are often targeted by scammers who call victims and pretend to be a loved one or law enforcement officer. They convince the victim to deposit large sums of cash into the machine, which is then sent to a wallet controlled by the scammer.
The issue with crypto ATMs lies not in their design, but in the lack of regulation and oversight. Many operators prioritize profits over safety and security measures, leading to scams and losses for unsuspecting victims.
Crypto advocates argue that these bans are a result of government efforts to restrict cryptocurrency use. However, experts point out that this trend is driven by political pressures, particularly in states with large elderly populations.