A surge in fraud involving Bitcoin ATMs in the United States has prompted strong federal and state regulations.
The FBI announced on the 30th that losses from Bitcoin ATM fraud reached $333.5 million (approximately KRW 477 billion) between January and November 2025. This represents a 33% increase from the $250 million in losses reported in 2024 alone, nearly doubling the previous year and continuing the upward trend.
Elderly people are particularly vulnerable. A lawsuit filed in September by the District of Columbia Attorney General alleged that 93% of deposits made from Athena Bitcoin's DC machines, a major operator, were directly linked to fraud, and that the median age of the victims was 71.
The scam is sophisticated. They impersonate customer service representatives, claiming they're at risk of identity theft or account breaches, and then send a QR code via text message linking to a digital wallet. Victims are then prompted to scan the code and deposit cash. The money is then converted into Bitcoin and stolen. Due to the irreversibility of cryptocurrency transactions, recovery is virtually impossible.
In response, Illinois became the first state in the Midwest to pass a Bitcoin ATM regulation law in August. The bill requires operators to register with state regulators, caps transaction fees at 18%, and sets a daily transaction limit of $2,500 for new users. The city of Spokane, Washington, took even more drastic measures, banning the installation of approximately 50 Bitcoin ATMs citywide.
The Washington, D.C., attorney general filed a lawsuit against Athena Bitcoin, alleging it exploited seniors and violated consumer protection laws, charging undisclosed fees of up to 26% on some transactions. The Iowa attorney general also filed a lawsuit in February against Bitcoin Depot and CoinFlip, accusing them of concealing large fees and profiting from fraud victims.
The Treasury Department's Financial Crimes Enforcement Network issued an emergency warning about Bitcoin ATMs in August, stating that operators who fail to maintain proper Bank Secrecy Act procedures are exacerbating the risk of illicit activity. As of November, the US had approximately 30,750 Bitcoin ATMs, representing 78% of the global total, and the global total has remained at around 40,000 since 2022.
The industry is pushing back. Bitcoin Depot's chief legal officer argues that transactions are terminated once users deposit cash and the cryptocurrency is transferred to their chosen wallet, and that local law enforcement's practice of sabotaging devices actually creates more victims.
Currently, more than 20 states across the US have enacted or are in the process of enacting Bitcoin ATM legislation, and some countries are taking even more drastic measures. New Zealand implemented a nationwide ban on Bitcoin ATMs in June to curb criminal financing.
