Minnesota Attorney General Keith Ellison has launched a new initiative to track and understand how residents are using cryptocurrency ATMs. Residents are being urged to participate in a brief survey designed to help law enforcement identify the tactics used by scammers who increasingly rely on these machines to siphon funds from victims.
The data collection effort follows a formal scam alert issued by Ellison on December 19, signaling a ramp-up in the state’s investigation into the risks associated with crypto kiosks.
Understanding the Survey’s Goals
The Attorney General’s Office is seeking specific insights into user behavior to better protect “hardworking Minnesotans.” Key areas of the survey include:
- Usage Habits: Which companies and machines are used most frequently.
- Referral Sources: Who first introduced the user to crypto ATMs.
- Financial Loss: Whether users have lost money through these transactions.
Ellison emphasized that scammers prefer these machines because the transactions are notoriously difficult, and often impossible, to trace. “It is essential for law enforcement to keep pace with these criminals,” Ellison stated, noting that the survey results will be a vital tool in fighting extortion and fraud.
A Growing National Concern
The investigation in Minnesota mirrors a broader national trend of legal and regulatory scrutiny regarding crypto kiosks:
- Rising Fraud Levels: According to the FBI, fraud involving crypto ATMs resulted in losses of approximately $246.7 million in 2024.
- Legal Action in D.C.: Washington D.C. Attorney General Brian Schwalb recently sued Athena Bitcoin, a major operator. Schwalb alleged that over 93% of deposits on the company’s machines were linked to scams and that the company failed to implement sufficient anti-fraud measures.
- Industry Pushback: Athena Bitcoin has dismissed these allegations as “ridiculous,” maintaining that they use multiple safeguards, including transaction limits, verification screens, and prominent warnings to protect users from coerced transactions.
Guidance for Consumers
Attorney General Ellison cautioned that while crypto ATMs are convenient, they have become a “go-to method” for fraudsters. He advised that residents interested in purchasing digital assets should seek out more secure and reputable methods rather than using public kiosks.
