Skip to content
Subscribe
  • Home
  • Services
  • Video
  • Events
Subscribe

Reading

1,200 Bitcoin ATMs Go Dark in the US as Fraud Concerns Grow
News Legal

1,200 Bitcoin ATMs Go Dark in the US as Fraud Concerns Grow

Experts suspect the new Crypto ATM Fraud Prevention Act, introduced by Senator Dick Durbin has spooked bitcoin ATM operators.
Alex Lari
By: Alex Lari
Mar 04, 2025
2 min read
1,200 Bitcoin ATMs Go Dark in the US as Fraud Concerns Grow

In early March, the US saw a massive and sudden drop in bitcoin ATMs with over 1,200 machines going offline.

This came just days after Illinois Senator Dick Durbin introduced a new bill to prevent fraud in the bitcoin ATM industry. The proposed “Crypto ATM Fraud Prevention Act” has operators and regulators worried about the future of these machines in the US.

According to Coin ATM Radar, the global Bitcoin ATM network lost more than 1,000 machines in early March. Of those, 1,233 were removed from the US market alone.

Related: Bitcoin ATM Scams on the Rise | Senators Call for Urgent Action

While other countries like Canada, Spain, Poland, Australia and Switzerland had new installations, the US decline was a major surprise.

Despite this reduction, the US still has the most bitcoin ATMs with 29,731 machines, which is almost 80% of the world’s total. Canada has 3,144, and Australia 1,457.

The timing of this massive decline suggests a connection to new regulatory scrutiny.

Senator Durbin’s Crypto ATM Fraud Prevention Act aims to prevent scams by requiring operators to warn users about scams, implement financial loss prevention measures, and give law enforcement better tools to track illegal transactions.

The bill was introduced after scams involving bitcoin ATMs surged, with criminals using the machines to steal money from unsuspecting victims. Senator Durbin said digital asset ATMs are being used by scammers and wants operators to be held accountable to protect the public.

bitcoin atm fraud prevention act
Senator Jack Reed on X

The bill puts several new measures in place, including:

  • Mandatory warnings on ATMs to inform users about scams.
  • Stronger compliance requirements for operators to submit anti-fraud policies to FinCEN.
  • Transaction limits for new users, $2,000 daily and $10,000 in 14 days.
  • Refunds for fraud victims if they report losses within 30 days.

Transactions over $500 will require live verbal confirmation to ensure the user is aware of the risks. Fraudsters have used these machines to run different kinds of scams, including romance scams where victims are asked to send digital assets to fake online partners.

Impersonation scams were also employed in which criminals posed as government officials and demanded payment through digital asset ATMs. There were also reports of investment scams where scammers promise high returns for digital asset deposits.

According to the Federal Trade Commission (FTC), reported losses from bitcoin ATM scams jumped from $12 million in 2020 to $114 million in 2023. The FBI says older Americans are the primary victims, with thousands of complaints filed each year.

Digital asset ATM operators are being hit hard with intense regulatory pressure as the authorities crack down on unregistered businesses.

This isn’t just a U.S. issue—other countries are also taking action. In the UK, Olumide Osunkoya was just sentenced to 4 years in prison for running illegal digital asset ATMs for money laundering.

The Financial Conduct Authority (FCA) has since removed dozens of unregistered machines and warned consumers about the risks of using them.

The regulatory heat has many U.S.-based bitcoin ATM operators rethinking their business model. Some will comply with the new laws, others will shut down altogether, fearing the legal consequences.

Stay on top of Bitcoin
news, get weekly updates
in your inbox.

Recommended News

Markets
Markets
US-Listed Bitcoin ETFs Now Hold Over 6% of Total BTC Supply
Jun 29, 2025
2 min read
By: Alex Lari
Markets
Markets
Bakkt Files $1 Billion Shelf Registration to Back Bitcoin Strategy
Jun 28, 2025
2 min read
By: Alex Lari
Markets
Markets
Metaplanet Overtakes Tesla as 7th Largest Corporate Holder of Bitcoin
Jun 27, 2025
2 min read
By: Alex Lari
All News
Accelerating Adoption
News
  • Adoption
  • Legal
  • Markets
  • Mining
  • Opinion
  • Press Release
  • Learn
  • Sponsored
Company
  • About Us
  • Brand Assets
  • Newsletter
  • Services
  • Site Map
  • Terms & Privacy
Connect
  • Contact Us
  • Contribute
  • Services
  • Media Partner
  • RSS
  • Videos
Social Media
  • Twitter
  • YouTube
  • Telegram
  • LinkedIn
  • Instagram
  • Nostr
  • TikTok
  • Flipboard

© A Bitcoin-Focused Company | 256 Media, 2024

Language Switcher
Search
  • News
    • Adoption
    • Legal
    • Markets
    • Mining
    • Opinion
    • Press Release
    • Learn
    • Interviews
  • Services
  • Video
  • Events
  • News
    • Adoption
    • Interviews
    • Learn
    • Legal
    • Markets
    • Mining
    • Opinion
    • Press Release
  • About Us
  • Contact
  • Newsletter
Search

Popular Articles

US-Listed Bitcoin ETFs Now Hold Over 6% of Total BTC Supply
June 29, 2025 · 2 min
Bakkt Files $1 Billion Shelf Registration to Back Bitcoin Strategy
June 28, 2025 · 2 min
Lnfi Network Integrates RGB to Complete Lightning Network’s Value Stack
June 27, 2025 · 2 min
Metaplanet Overtakes Tesla as 7th Largest Corporate Holder of Bitcoin
June 27, 2025 · 2 min
Castle Raises $1M to Automate Bitcoin Treasury Solution
June 26, 2025 · 3 min
Arizona One Step Away from Creating Bitcoin Reserve Fund with Seized BTC
June 26, 2025 · 2 min

Bitcoin Only
Newsletter

Get weekly news roundups direct to your inbox!