Cryptocurrency ATM scam losses double to 240 million, as a wave of bans is spreading across the US

The events that happened in the first half of 2025 are only now coming into full view. According to the latest data from the US FBI, losses caused by crypto ATM scams have reached $240 million, roughly double the amount during the same period in 2024. More notably, this wave of scams is driving tighter regulations across the United States, with Spokane, Washington becoming the first US city to fully ban crypto ATMs, and several other states considering similar bans.

Scam Phenomenon: Numbers Speak

The growth rate of crypto ATM scams is quite alarming. From 2024 to the first half of 2025, losses doubled to $240 million. This is not a minor issue; it’s a clear trend signal—scammers are increasingly viewing crypto ATMs as a profitable new channel.

How do these scams usually operate? While the news brief doesn’t detail specific methods, industry common practices suggest scammers typically:

• Impersonate technical support or official agencies to induce victims to perform transactions at ATMs
• Exploit victims’ unfamiliarity with cryptocurrencies to create a sense of urgency
• Use false investment promises or refunds to deceive funds
• Take advantage of the irreversible nature of crypto transactions, making it impossible for victims to recover funds

Regulatory Counterattack: Ban Wave Begins

The full ban in Spokane, Washington marked a turning point. It is the largest city-level crypto ATM ban in the US, breaking previous scattered regulatory attempts.

States and cities currently considering or discussing similar measures include:

What does this trend indicate? It shows that regulators are beginning to treat crypto ATMs as a serious consumer protection issue. No longer just “watching,” but actively taking action.

Why Now?

There are several reasons why crypto ATMs have become a hotbed for scams:

User Vulnerability

Crypto ATMs are often located in convenience stores, gas stations, and other high-traffic but lightly regulated areas. Users often lack crypto knowledge and are easily induced.

Irreversible Transactions

This is a core feature of crypto and a favorite tool for scammers. Once transferred, it’s nearly impossible to recover the funds.

The US Market’s Specifics

80% of crypto ATMs worldwide are in the US. This means the US is both the main victim and the most urgent place for action.

Future Developments

Based on current trends, we can expect:

Short Term (next 6-12 months)

More states and cities may follow Spokane’s lead, considering or implementing bans. This will directly impact crypto ATM operators.

Medium Term (1-2 years)

A nationwide regulatory framework might be discussed, moving beyond individual state actions. FBI and other federal agencies could push for more unified standards.

Long-Term Impact

Bans could drive industry transformation—either by improving security measures and user verification or gradually exiting the US market.

Summary

The doubling of crypto ATM scams has sounded an alarm. From losses of $240 million to the spread of bans across multiple states, this reflects a shift in regulatory attitudes—from passive response to proactive crackdown.

Key points:

• Scam losses doubled, becoming a regulatory priority
• The US is experiencing a wave of crypto ATM bans
• This trend is likely to accelerate rather than slow down
• For crypto ATM operators, change is already inevitable

The ultimate impact of this ban wave depends on how many other states follow suit and whether it evolves into broader crypto regulation policies. But based on the current pace, the days of crypto ATMs are indeed becoming more difficult.