USA01 August, 20262 min read
Minnesota Shuts Down Crypto ATMs After Scammers Swindle $1 Million From Minnesotans
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Minnesota bans crypto ATMs statewide; existing machines must shut immediately and be removed by end-2026. Around $1 million lost to crypto kiosk scams since 2023; seniors most affected.
Minnesota kiosk ban begins
Minnesota’s ban on cryptocurrency kiosks took effect on Saturday, shutting down a tool that officials said scammers used to swindle $1 million from Minnesotans.
The ban followed legislation signed by Democratic Gov. Tim Walz on May 4, and existing machines must be removed from the state by Dec. 31.
State officials said they investigated 134 complaints involving crypto kiosks between 2023 and 2025, during which Minnesotans lost nearly $1 million.
CBS News reported that when the bill passed, there were roughly 350 licensed cryptocurrency kiosks operating in Minnesota, run by eight companies.
Minnesota Department of Commerce Commissioner Grace Arnold said, "There is no safe crypto kiosk."
How scams worked
State officials said the machines were used by criminals to disproportionately target seniors, and they described scammers impersonating law enforcement officers to pressure elderly victims into using nearby crypto ATMs. Paul Haas, an investigator with Minnesota's Department of Commerce, said, "When victims call our office after a crypto kiosk scam, you can hear the panic and shame in their voices." Fox Business reported that scammers often told victims to send money for a loved one’s supposed release from jail, and it said the emotional and financial damage could be devastating.
CBS News described a scenario involving Sister Agnes Foley, who said she received a call on her iPhone from someone she thought was from the bank. Foley said, "So, I left and got back in the car and the directions, now I was to go to Target and do this."
Numbers and next steps
Officials said crypto transactions are difficult to trace once funds reach a scammer’s digital wallet, and Fox Business noted that crypto ATM transactions cannot be reversed.
CBS News said the bill was backed by local law enforcement, the Minnesota Bureau of Criminal Apprehension and the American Association of Retired Persons, among others.
CBS News also cited a 2024 report by the FBI showing nearly 11,000 complaints involving cryptocurrency kiosks nationwide, with more than $240 million in losses.
The Cryptonomist reported that Minnesota’s law took effect on Saturday and required operators to deactivate machines by Saturday while physically removing them from locations by Dec. 31.
The Cryptonomist said the FBI’s Internet Crime Complaint Center reported more than $151 million in Minnesota losses tied to crypto or crypto wallets in 2025 alone.