Minnesota enforces ban on crypto kiosks after nearly $1 million lost to scams

A law signed by Governor Tim Walz in early May now bans the placement of cryptocurrency ATMs across Minnesota, with a deadline of December 31 to dismantle all existing machines. State investigators reported that seniors have been duped out of nearly $1 million since 2023, with scammers impersonating law-enforcement officers and coercing victims into sending funds for bogus jail-release schemes. Last year alone saw 70 reported cases, resulting in losses exceeding $540,000 and an average transaction loss of roughly $6,800.

Crypto transactions are irreversible and difficult to trace, leaving victims with little recourse, and many choose not to report the fraud due to embarrassment. The crackdown on crypto kiosks coincides with a federal investigation into alleged Medicaid fraud, including a $200 million hold on Minnesota funds and recent guilty pleas by four state residents. Officials hope the ban will protect vulnerable consumers while broader fraud issues are addressed.