Security

Senate bill aims to regulate crypto ATMs

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February 26, 2025

Illinois Sen. Dick Durbin has proposed the Crypto ATM Fraud Prevention Act, which would put a $2,000 daily limit or a $10,000 14 day limit on new users. The bill also calls for companies to speak with customers wishing to buy more than $500 and deliver full refunds to customers who file police reports regarding fraud, according to a report by NBC News.

The purpose of the bill to combat cryptocurrency scams, where scammers convince victims to deposit money into crypto ATMs and send the cryptocurrency to an outside wallet. In 2023, there was at least $114 million lost from these scams.

"As our technology has evolved and become more sophisticated, so have scammers," Durbin, said in a statement. "Nefarious actors are now using intimidation and manipulation to scare Americans, particularly seniors, into dumping their life savings into cryptocurrency ATMs."

One victim, Erick Riesman, 67, said that he deposited $7,000 into a bitcoin ATM as part of a jury duty scam. He said if he received a call from a customer service representative, that could have helped.

Currently, Minnesota, California and Vermont have daily limits for crypto ATM transactions. The bill will defer to state regulations if they are not in conflict or less restrictive.