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Alabama seeks to curb crypto ATM fraud

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January 28, 2026

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Alabama State Representative Russell Bedsole introduced a bill in the state legislature aimed at curbing widespread fraud tied to crypto ATMs across the state, according to a CBS42 News report. The bill, known as the "Cryptocurrency Kiosk Fraud Prevention Act," was introduced alongside the Alabama Securities Commission's release of troubling new data on crypto kiosk fraud. Bedsole, a Republican lawmaker and law enforcement officer with the Shelby County Sheriff's Office, said the legislation is intended to send a message that Alabama will not tolerate scammers exploiting residents through cryptocurrency kiosks.

A statewide survey found that Alabama residents have lost $6.5 million to scams tied to cryptocurrency kiosks; roughly half of the $12.5 million deposited into the machines during the period studied. The commission reviewed activity from six crypto ATM operators and contacted more than 1,100 users from 2024, successfully surveying about 600 individuals. Of those surveyed, 64% reported being victims of fraud, and more than half of the victims were aged 60 or older, with many scams concentrated in central Alabama.

If passed, Bedsole's bill would require crypto ATMs to display fraud warnings and impose transaction limits of $1,000 per day and $10,000 per month, along with provisions that could help victims recover funds after reporting fraud. Industry responses were mixed but generally supportive of consumer protection. Bitcoin Depot said it supports thoughtful regulation that balances safeguards with access, while compliance firm BitAML warned against overly broad restrictions that could push users toward less regulated alternatives. Both emphasized collaboration among lawmakers, regulators, and industry as the most effective path forward.